Coinbase Custodial Services Aims for Leading Role in Approaching Bitcoin ETFs

By: Isha Das

Coinbase Custody, a branch of Coinbase, has extensively worked on its preparedness for the potential approval of spot Bitcoin ETFs as part of the ongoing pursuit to become a leading custodial service. An executive reshuffle has also been carried out, with former CEO Aaron Schnarch stepping down, and Rick Schonberg, a Coinbase employee from 2021 with a strong traditional finance background, taking up the mantle.

A spokesperson for Coinbase has stated the company's systems have been strategically designed and rigorously tested to handle increased trading volumes, heightened liquidity and a surge in demand for their systems. As regulated custodians, these facilities could play a crucial role in cryptocurrency ETFs, assuring investors of the secure storage of their digital tokens.

A wide range of ETF applicants, such as BlackRock, Franklin Templeton, Grayscale Investments and VanEck, have shown interest in utilising Coinbase Custody to manage their Bitcoin holdings. Furthermore, firms including Invesco, Fidelity, WisdomTree, and Bitwise have recently updated their amendments. SEC must reach a verdict on Ark Invest's spot Bitcoin ETF by January 10th, 2024. The industry is eagerly anticipating the decision and the prolonged impact it will hold for the wider acceptance of cryptocurrencies.

Meanwhile, Bitcoin's price lingered at $42,100, a 1.1% decrease over the past 24 hours. The largest cryptocurrency in the market, Bitcoin has been moving sideways above $40,000 since the start of December, but has managed an 11% gain in the past 30 days.