Coinbase Shares Drop 8% Amid CME's Spot Bitcoin Trading Plans

Coinbase shares fell 8% after CME announced plans to offer spot Bitcoin trading.
Coinbase Shares Drop 8% Amid CME's Spot Bitcoin Trading Plans

Key Takeaways

  • Coinbase shares fell 8% after CME announced plans for spot Bitcoin trading.
  • CME is already the largest Bitcoin futures exchange in the U.S.
  • Spot Bitcoin ETFs have attracted over $10 billion from institutions in three months.

Shares of Coinbase fell nearly 8% to $202.49 during U.S. morning hours on Thursday following a report from the Financial Times.

The drop came after news that the Chicago Mercantile Exchange (CME) might soon offer spot Bitcoin trading due to strong interest from clients.

Coinbase stock

Coinbase’s stock (COIN) has surged 29% year-to-date as Bitcoin prices have rallied since the start of the year.

The CME, a Chicago-based institution with over a century of history, is the largest futures exchange globally and a significant financial entity.

Until recently, Coinbase was one of the most trusted Bitcoin exchanges in the U.S., but this could change if CME enters the market. CME is already the biggest Bitcoin futures exchange by open interest in the U.S.

A designation by U.S. regulators marks CME as a:

systemically important financial market utility

Meaning it faces more stringent supervision.

Meetings

The exchange has reportedly been holding meetings with traders interested in trading Bitcoin on a regulated platform, as per sources cited by the Financial Times.

Traders’ reluctance to engage with digital assets often stems from a lack of trust in Bitcoin exchanges, especially following scandals involving companies like FTX.

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