Coinbase shares reached a new yearly high after announcing partnerships related to exchange-traded funds (ETFs) and data sharing.
COIN: Weekly Chart
The price of COIN hit its yearly high in early 2023 during the Bitcoin rally at $87.46 and has now reached a new high of $90.
This week, exchange operator Cboe Global Markets applied to list and trade shares of three spot bitcoin ETFs, including one by Fidelity. These applications include surveillance-sharing agreements with Coinbase to prevent market manipulation and potentially facilitate SEC approval for a spot market Bitcoin ETF.
The SEC has been hesitant about spot versions due to concerns about market manipulation. The regulator requires an exchange to have a comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying bitcoin assets for approval.
BlackRock, an asset management giant, also filed for an ETF on June 29 and has a surveillance-sharing agreement with Coinbase.
Ark Invest, a fund manager, has been buying Coinbase shares aggressively since the FTX exchange faced troubles but sold 135k shares this week as the stock reached $90. Despite the sell-off, Ark Invest still holds 11 million shares of the crypto firm, making it the second-largest holding in its flagship ETF after Tesla.
Standard Chartered expressed optimism about Bitcoin’s prospects, predicting that the coin could quadruple to $120k by the end of 2024.
“Increased miner profitability per BTC mined means they can sell less while maintaining cash inflows, reducing net BTC supply, and pushing BTC prices higher,” StanChart analyst Geoff Kendrick wrote on Monday.
“At recent prices, miners have been selling 100% of new BTC; at US$50,000, we think they would sell 20% to 30%,” Kendrick said.
Bitcoin investors are eagerly anticipating the upcoming “halving” event in 2024. This preprogrammed event occurs every four years and is designed to decrease the supply of Bitcoin rewards for miners from approximately 900 per day to 450. By doing so, it ensures that the total number of Bitcoin tokens remains below the limit of 21 million. The supply and demand dynamics resulting from this event are believed to have a positive impact on the value of the coin, making it a bullish prospect.
Coinbase shares are testing the yearly highs, and traders should look for price confirmation around this time of year for a continuation or reversal.
