Coinbase Custody Dominates Bitcoin ETF Market with 90% Holdings
Coinbase Custody, the crypto exchange’s custody arm, has become a major player in the Bitcoin ETF market in the United States. According to Brian Armstrong, Coinbase’s CEO, the company now holds over 90% of all Bitcoin ETFs. This achievement was highlighted during the company’s performance appraisal for Q4 2023.
Facilitating Adoption of Cryptocurrencies by Traditional Financial Firms
Coinbase has played a crucial role in facilitating the adoption of cryptocurrencies by traditional financial firms (TradFi). One significant aspect of this adoption is the Bitcoin ETF market, which is valued at $37 billion and ranks as the second largest commodity ETF market after Gold. Coinbase serves as custodian for 90% of the investment funds in this market.
Coinbase’s Role as Custodian for Bitcoin Spot ETFs
As a custodian, Coinbase is responsible for holding customers’ securities and assets, providing protection against loss or theft. It is listed as the custodian for eight out of the 11 recently launched Bitcoin spot ETFs, including IBIT, ARKB, BITB, and GBTC. These statistics position Coinbase well for future milestones as top traditional financial institutions are expected to invest in Bitcoin ETFs.
Achievements in Q4 2024 and Plans for the Future
In addition to its dominance in the Bitcoin ETF market, Coinbase achieved several milestones in Q4 2024. This includes launching its international wing and introducing the layer-2 blockchain solution Base. The company also reduced annual costs by 45% while generating $3.1 billion in income.
Looking forward to 2024, Coinbase plans to focus on international expansion, new derivatives products, and promoting crypto payments through its wallet. The company also emphasizes the need for a clear regulatory framework and is committed to advocating for it.
Hot Take: Coinbase Custody Establishes Stronghold in Bitcoin ETF Market
Coinbase Custody’s dominance in the Bitcoin ETF market is a significant development for the company. With over 90% of all Bitcoin ETFs held, Coinbase has positioned itself as a major player in facilitating the adoption of cryptocurrencies by traditional financial firms. As more traditional institutions consider investing in Bitcoin ETFs, Coinbase’s role as custodian for these assets will likely contribute to its continued success. Additionally, Coinbase’s achievements in Q4 2024, such as cost reduction and income generation, demonstrate the company’s financial strength and growth potential. Moving forward, Coinbase aims to expand internationally, introduce new products, and advocate for clear regulations in the crypto space.
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