Coinbase Stock Surges 12% as BlackRock Names it as Surveillance Partner

On July 3, Nasdaq revealed that the world’s largest asset manager BlackRock had re-filed its application for a spot Bitcoin ETF.

The details added included a “surveillance-sharing agreement” with U.S. cryptocurrency exchange Coinbase.

The move has given a big boost to Coinbase shares and crypto markets, which have marched higher again today.

JUST IN: BlackRock has re-filed for spot bitcoin ETF, the resubmission was dated 6/29, Nasdaq just posted tho. They just added Coinbase like everyone else. pic.twitter.com/UGq46DdLgu

— Eric Balchunas (@EricBalchunas) July 3, 2023

BlackRock Coinbase Partnership

BlackRock was among several fund managers that were forced to resubmit their ETF applications because the Security and Exchange Commission (SEC) claimed that applications submitted by Nasdaq and Chicago Board Options Exchange (Cboe) on their behalf were “inadequate.”

The filing included details of an agreement between the Nasdaq and Coinbase last month. The deal intended to “supplement the exchange’s market surveillance program” and provide access to spot BTC trade data.

Nasdaq “expects to receive market data for orders and trades from Coinbase,” which it will utilize in surveillance of the trading of the BlackRock Bitcoin ETF if approved, according to reports.

The SEC has greenlighted a number of futures-based ETFs but has yet to approve a spot-based one that is physically backed by the asset as opposed to CME contracts.

Industry analysts have said that this is a move to control the asset class by the SEC and Wall Street following a massive crackdown on crypto companies in America this year.

The Cboe re-filed applications for several other firms that were looking to launch spot BTC funds last week. These include Fidelity, WisdomTree, VanEck, and Invesco, all of which also listed Coinbase as a surveillance-sharing partner.

ETF Store President Nate Geraci said that a spot Bitcoin ETF launch will shatter previous ETF launch records.

Will go on record…

Think spot bitcoin ETF launch shatters previous record ETF launch.

It won’t even be close.

<not investment advice>

— Nate Geraci (@NateGeraci) July 4, 2023

COIN Prices Pump

Coinbase shares surged almost 12% on June 3 in response to the BlackRock endorsement. As a result, COIN was trading at $80.98 in after-hours trading on July 4, according to MarketWatch.

The company stock has had a solid run in 2023 as crypto markets have recovered. COIN has made a notable 140% increase since the beginning of the year, outpacing crypto markets, which have gained around 52% in the same period.

Crypto markets were up 1% on the day, with total capitalization reaching $1.26 trillion at the time of writing. Bitcoin hit a new local peak but remains stuck at heavy resistance at just over $31,000.