Coinbase is the largest market globally for trading Bitcoin in US dollars, according to multiple sources including CoinMarketCap, which may make it a market of significant size in the SEC's eyes. The largest Bitcoin trading markets are currently on Binance, but both are stablecoin pairs with Tether (USDT) and TrueUSD (TUSD). Coinbase's USD trading pair is third and at least 3x as large and liquid as No. 2 USD exchange Kraken. Coinbase also has multiple other Bitcoin pairs in the top 50, including USDT, EUR, ETH and GBP.

Combining the assumed Coinbase surveillance sharing agreement (SSA) with the regulated CME Bitcoin futures market might constitute oversight in an aggregate market of significant size. This is before adding potential other SSAs with spot exchanges such as Gemini.

Eoin Treacy's view

The big question for everyone in the crypto market is whether an ETF will be permissioned. Once the precedent is set, every asset management house will have a product offering within weeks and that will represent a massive new source of demand. That’s the primary reason bitcoin has rebounded to test April peaks around the psychological $30,000 level. If the market is disappointed by the SEC’s decision, the price will come back down.

Coinbase is firming within its base formation. It will likely be a key custodian of bitcoin and has the heft to manage flow better than other competitors. The fact it has not dabbled in creating its own token is also a vote in its favour and not least because the company is both surviving and thriving.