In an atmosphere of growing anticipation and excitement, stocks closely linked to the renowned cryptocurrency Bitcoin exhibited a noteworthy rally earlier this week. This surge can be attributed to the revelation on Friday that Cboe’s BZX Exchange has once again submitted its proposals for the establishment of several spot Bitcoin exchange-traded funds (ETFs).
This news manifested in a more than 10% rise in shares for crypto exchange Coinbase, resulting in a surge of $80+ around 11:30 ET on Monday. Opted to spearhead market surveillance-sharing contracts as part of the ETF proposals, Coinbase’s involvement adds another layer of interest to the narrative.
Cboe has been in collaboration with myriad providers such as Fidelity, WisdomTree, and ARK Invest in a concerted effort to procure approval for a spot Bitcoin ETF from the US Securities and Exchange Commission (SEC). This endeavour is mirrored by BlackRock, who is similarly coordinating efforts in tandem with Nasdaq.
Interestingly, after their initial proposals were negated by the SEC due to the absence of a specific exchange engaged in surveillance-sharing agreements, plans have been refiled, highlighting Coinbase as the exchange in question. This revival of plans was reflected in Bitcoin itself, demonstrating a surge of around 2% on the same day, culminating in a value exceeding $31,000.
Moreover, the business intelligence company Microstrategy, which possesses over $4.6 billion in Bitcoin, also witnessed a boom in its shares, recording a rise of around 10% to $375, a peak unseen in more than a year.
From a macro perspective, the increasing probability of a spot Bitcoin ETF procuring approval from the SEC is perceived by cryptocurrency analysts as highly promising for Bitcoin’s future. Such an approval could serve to streamline the process of traditional investors with stock accounts adopting Bitcoin. However, this positive projection could potentially overstate the readiness of traditional investors to embrace such a volatile asset. Furthermore, it is vital to consider that regulatory approval, while being crucial, is merely one facet among an array of factors governing Bitcoin’s complex market dynamics.
Source: Coindesk
