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Bitcoin ETF close to reality after Coinbase and CBOE's SSA agreement

  • Coinbase has been pegged as the Surveillance Sharing Agreement (SSA) counterpart for over two weeks now.
  • SEC filings show that Wise Origin, WisdomTree, VanEck, Invesco Galaxy and ARK 21Shares applications all were amended on Tuesday.
  • Q3 2023 began with a positive note from the institutional investors, with digital assets observing $470 million in inflows.

Coinbase shareholders are having an eventful Tuesday as the cryptocurrency exchange's stock price (COIN) shot up following the news of the Bitcoin ETF. The said development comes amid an ongoing battle between the United States Securities and Exchange Commission (SEC) and multiple companies awaiting their Bitcoin ETF approval. But Coinbase could be the first US-based crypto exchange to realize this dream.

Coinbase up, once again

Coinbase stock price has seen its second major hike in under ten days as the value of the crypto exchange received a boost on Tuesday. Coinbase was expected to be the Surveillance Sharing Agreement (SSA) counterpart for the Chicago Board Options Exchange (CBOE) ETF applications.

The two reached an agreement with their amendments on Tuesday, likely resulting in the successful green candle observed on the charts in the case of COIN. Per the filing, 

"On June 21, 2023, the Exchange reached an agreement on terms with Coinbase, Inc., an operator of a United States-based spot trading platform for Bitcoin that represents a substantial portion of US-based spot trading platform for Bitcoin that represents a substantial portion of US-based and USD denominated Bitcoin trading, to enter into a surveillance-sharing agreement ("Spot BTC SSA") and executed an associated term sheet.

CBOE extended the amended filing to all the spot Bitcoin ETFs within the exchange. This included the likes of  Wise Origin, WisdomTree, VanEck, Invesco Galaxy and ARK 21Shares. BlackRock is another applicant that announced Coinbase as its SSA counterpart.

Consequently, at the time of writing, COIN could be seen trading at $89.25 post-market close. Up by more than 12% in the last 24 hours, the stock is set to breach the $90 mark soon and potentially continue rallying further.

COIN 1-day chart

COIN 1-day chart

Institutional investment in crypto has been the driving factor of any and every major rally on the macro scale, and the third quarter of the year seems to be just holding the institutions' interest pretty well.

As per the recent CoinShares investment report, institutions have been rather optimistic in Q3. The quarter opened with inflows amounting to $136 million, with investment products retaining the institutions' optimism. 

Bitcoin itself noted the largest chunk of this inflow registering $132 million being invested into the asset for the week ending July 7. A couple of altcoins, too, enjoyed this bullishness as Ethereum noted inflows of nearly $3 million, along with Solana noting $1.2 million worth of inflows. 

Institutional investors' inflows

Institutional investors' inflows

Thus, institutional investors maintaining their optimism regarding crypto will prove to be a boon for the industry.


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Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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