The global crypto industry reacted quite well to Changpeng Zhao (CZ) and Binance situation. However, it seems like Coinbase Global Inc. is enjoying the aftermath of this affair. Data depicts that Coinbase (COIN) shares registered a notable surge to reach their highest point in 18 months.
Coinbase YTD surge hits 256%
As per the data, Coinbase (NASDAQ: COIN) share price went on to hit $119.7 on November 27, 2023. This surge marks a substantial year-to-date increase of approximately 256.5% for the share. Meanwhile, COIN is still down by 65% from its all time high (ATH) of $343 recorded on November 12, 2021.
It is important to note that Coinbase’s share price registered a jump of around 19% over the past 5 days, while, its price is up by more than 62% in the last 1 month. This surge comes in the wake of Binance’s legal troubles.
The world’s largest cryptocurrency exchange, along with its former CEO CZ pleaded guilty to various charges. This included money laundering, violating U.S. sanctions, and operating an unlicensed money-transmitting business. However, the guilty plea led to a $4.3 billion settlement, with Binance agreeing to pay fines and restitution.
As part of the settlement, CZ agreed to pay a sum of $50 million in fines and step down from his role as Binance’s CEO. He is still facing a potential 18 month prison sentence under federal guidelines, the Justice Department can seek a more severe penalty.
Bitcoin ETF custodianship in spotlight
Coinbase’s recent market success extends beyond its financial implications. Bloomberg ETF analyst James Seyffart highlighted the US biggest crypto exchange’s role as the custodian for 13 out of 19 spot crypto ETFs which are awaiting approval from the Securities and Exchange Commission (SEC). He noted that Custodianship is a critical aspect in the establishment of a spot Bitcoin ETF, ensuring secure asset storage.
Coinbase’s market success will follow its pivotal role in potential ETF offerings positioning it as a crucial player in the evolving digital assets industry. As regulatory scrutiny intensifies, the industry closely monitors Coinbase and its counterparts for developments that could influence the trajectory of digital asset trading.
