Cboe on Friday refiled an application with the U.S. securities regulator to launch a bitcoin ETF by asset manager Fidelity

Shares of Coinbase, the biggest U.S. cryptocurrency platform, soared 13 per cent on Monday after exchange operator Cboe announced it was working with the crypto firm in its endeavours to launch a spot bitcoin exchange-traded fund (ETF).

The exchange operator on Friday refiled an application with the U.S. securities regulator to launch a bitcoin ETF by asset manager Fidelity. In that filing it named Coinbase as the crypto platform that would help the exchange monitor manipulation in the exchange-traded fund.

Cboe sought to address concerns raised by the Securities and Exchange Commission that its original filing did not name the crypto-trading platforms that would help it identify fraud in the underlying bitcoin markets, Reuters reported citing a person familiar with the matter.

The Securities and Exchange Commission had also raised the same concerns with Nasdaq over a similar recent filing for a spot bitcoin exchange-traded fund from BlackRock, according to the person familiar with the matter.

The Securities and Exchange Commission has refused approval to a number of spot bitcoin ETF applications in recent years, stating they do not prevent fraudulent practices and safeguard investors. The ETF sector is attempting to find a way to address that concern.

Coinbase shares ended 11.7 per cent higher at $79.93 on Monday, and have more than doubled in 2023.

Bitcoin, the world’s biggest cryptocurrency by market cap, climbed to over one-year high last month after BlackRock and Fidelity filed to launch bitcoin exchange-traded funds.

Those filings came weeks after the Securities and Exchange Commission sued Coinbase and Binance, claiming infringement of its rules, in a major regulatory clampdown on the digital asset industry. The two exchanges refuse the charges.

Bitcoin was changing hands at $31, 029, 1.32 per cent higher while Ethereum, the world’s second-biggest cryptocurrency, added 1.94 per cent to $1,964.