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Coinbase Shares Fall 9% According to CME Report Considering Spot Bitcoin Listing
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Shares of Coinbase fell nearly 8% on Thursday to a price of $202.49.
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The drop came after a Financial Times report that futures exchange CME was considering offering bitcoin spot trading to its clients.
Shares of Coinbase fell nearly 8% to $202.49 Thursday morning in the United States after a Financial Times report that the Chicago Mercantile Exchange (CME) could soon offer bitcoin spot trading amid strong interest from customers.
Cryptocurrencies were up that day. THE CoinDesk 20 Index, which tracks 20 of the largest digital tokens by market cap, is up 0.91% over the past 24 hours. Bitcoin {{BTC}} rose half a percent as it continued to benefit from Wednesday’s results. inflation report better than expected. COIN is up 29% year-to-date as cryptocurrency prices have increased year-to-date.
Chicago-based CME, with a history dating back more than a century, is the world’s largest futures exchange and a financial powerhouse. Until recently, Coinbase benefited heavily from being the most trusted crypto exchange in the United States, but this advantage could change if CME comes into play.
The CME was designated by American regulators as a “systemically important financial markets utility,” a designation that implies it is subject to stricter oversight. Many investors also assume that this designation implies that the government will never let the CME go bankrupt in the event of financial difficulties.
CME is already the largest Bitcoin futures exchange by open interest in the United States.
The exchange said it had held meetings with traders interested in trading bitcoin on a regulated market, people familiar with the matter told the Financial Times.
A common reason why traders don’t want to touch digital assets is a lack of trust in crypto exchanges, especially after a series of bad actors were unmasked in recent years, including the once-popular crypto exchange . FTX.
The recently launched spot Bitcoin exchange-traded funds (ETFs) offered traders a safer way to invest in the token, with over 500 institutions taking advantage in just the first three months of their existence, allocating over 10 billion dollars to funds alone. The rest, more than $40 billion, came from retail traders.