Coinbase Up 3.8% as Bitcoin Nears $29,000 Amid ETF Hype

Coinbase’s stock price continued its upward trajectory today, climbing more than 3.8% in the premarket. The rally is likely fueled by the latest crypto market rebound driven by the reignited spot Bitcoin exchange-traded fund (ETF) hype. Interestingly, Coinbase was sued by the country’s financial watchdog, the Securities and Exchange Commission, earlier this month over several charges.

Bitcoin Heading for $29,000

Shares of Coinbase are up more than 3.8% in premarket trading Wednesday as Bitcoin heads for the $29,000 mark after several financial institutions announced plans to file for a spot Bitcoin ETF, following the steps of BlackRock. On Tuesday, Coinbase’s premarket jump follows the stock’s 2.7% spike to $57.09.

At the same time, Bitcoin, the world’s leading cryptocurrency, crossed above $28,000 on June 20, soaring nearly 8% in the past 24 hours. At the time of writing, BTC’s price was changing hands at $28,933, adding more than $40 billion to its market cap on the day.

The upward move comes after well-known investment management firms filed to launch spot Bitcoin ETFs just several days after BlackRock, the world’s biggest asset management firm, applied for a spot Bitcoin ETF.

According to a June 21 filing with the US Securities and Exchange Commission (SEC), WisdomTree asked the securities regulator to let it roll out its “WisdomTree Bitcoin Trust” ETF on the Cboe BZX Exchange. This is the third time WisdomTree has applied for a spot Bitcoin ETF after getting its previous applications rejected by the SEC in December 2021 and October 2022.

Just hours after WisdomTree’s filing was made public, global investment management firm Invesco said it reactivated its application for its own ETF. Per Invesco’s 19b-4 filing, the global investment manager requested the SEC to allow its “Invesco Galaxy Bitcoin ETF” to be listed on the Cboe BZX exchange.

Investor Optimism Suggests Coinbase May Survive the Storm

Coinbase’s latest stock market rally comes amid a critical period for the world’s second-largest crypto exchange, which was sued by the SEC earlier this month. Among other charges, the exchange was sued for making billions of dollars in profits by “unlawfully facilitating the buying and selling of crypto asset securities.”

Nonetheless, the share price increase may indicate that investors have faith in the crypto exchange’s ability to navigate the uncertainty brought about by the SEC’s legal actions. After the SEC revealed its lawsuit against Coinbase, Cathie Wood’s ARK invested around $21.6 million in the troubled crypto exchange, highlighting the prominent investors’ vision and bullishness on Coinbase despite recent challenges.

Before charging Coinbase, the SEC also filed 13 charges against Binance and its CEO Changpeng Zhao on June 5.

This article originally appeared on The Tokenist