Shares of Coinbase Global Inc (NASDAQ: COIN) experienced a notable 16% surge following news of a surveillance agreement with Cboe’s BZX Exchange.
This agreement entails Coinbase’s participation in a surveillance-sharing arrangement (SSA) for five Cboe spot Bitcoin exchange-traded funds (ETFs).
Coinbase shares reached a high of $92.15 during the trading session, ultimately closing at $89.15 after a 24-hour increase of 9.78%.
MarketWatch data reveals that COIN has gained over 27% in the past three months, over 70% in the past month, and more than 64% in the last year. Notably, investors have witnessed a remarkable 151% climb in COIN since January.
According to an amendment submitted to the United States Securities and Exchange Commission (SEC), the Cboe BZX Exchange reached an agreement with Coinbase on June 21.
The amendment highlights that the SSA ensures access to Coinbase data on spot BTC trades as required by Cboe’s BZX Exchange.
The agreement empowers the exchange to utilize this data for surveillance purposes in trading Commodity-Based Trust Shares.
Moreover, the terms of the agreement enable the BZX Exchange to request additional information from Coinbase for market surveillance and fraud prevention purposes.
If the exchange determines the need to investigate potential manipulation in the trading of Commodity-Based Trust Shares, it can seek further insights from Coinbase regarding spot Bitcoin trading activity on its exchange platform.
The utilization of SSA is gaining traction among companies applying for spot Bitcoin ETFs. Asset management giant BlackRock recently submitted an application for the iShares Bitcoin Trust ETF, intending to facilitate Bitcoin investment for clients without direct access.
BlackRock’s filing also included an SSA with Coinbase. Similarly, the Cboe BZX Exchange amended a filing for the ARK 21Shares ETF, incorporating provisions for an SSA to detect, investigate, and prevent fraud and market manipulation.