As multiple fund managers resubmitted applications for spot bitcoin exchange-traded funds (ETFs) with Nasdaq and Cboe this week, Coinbase share prices increased significantly in the first half of 2023, rising over 30%. The updates emphasized that Coinbase has been invited to participate in a surveillance-sharing arrangement (SSA) when the ETF is approved.
In the last week, shares of Coinbase (Nasdaq: COIN) rose 30.82%, and according to data for the past six months, COIN has increased 131% in value relative to the US dollar. Despite this significant expansion, the company’s stock is still down 79% from its all-time high.
COIN was worth $319 per share on September 30, 2021, now worth $79.93. This sudden increase is most likely the result of numerous ETF managers submitting applications for a bitcoin ETF on the spot and naming Coinbase as their funds’ SSA affiliate. According to the most recent modifications, this action was carried out by Nasdaq and Cboe for several fund sponsors.
The U.S. Securities and Exchange Commission (SEC) has sued the San Francisco-based cryptocurrency exchange, which it is defending against. According to the SEC, Coinbase broke many securities laws and “failed to register its staking-as-a-service program as required by securities laws.”
The cryptocurrency exchange was sued by Coinbase, which claimed that it “is not, and has never been,” a “security exchange, broker, or clearing agency under the federal securities laws.” In addition, Coinbase underlined that while Congress is considering regulating virtual currencies, no laws have been passed giving “the SEC any powers to regulate digital asset exchanges, much less retroactively.”
Several other publicly traded companies saw soaring stock prices in the wake of the recent surge in the cryptocurrency market, while COIN has prospered this week against the dollar. In addition to COIN, companies like Riot Platforms, Microstrategy, Cleanspark, Bitfarms, and others have lately generated double-digit gains. However, COIN has outperformed the competition regarding crypto-related equities recording gains over the last week.
