Coinbase Custody Accounts For 90% Of All Bitcoin ETFs – Details
February 17 2024 - 3:00AM
NEWSBTC
Coinbase Custody reportedly now holds over 90% of all Bitcoin ETFs
in the United States. This development was revealed by the crypto
exchange’s CEO, Brian Armstrong, while appraising the company’s
performance in the fourth quarter (Q4) of 2023. Related Reading: 4
Surprising Insights From Coinbase’s Earnings, COIN Sees Bullish
Surge Coinbase Emerges As Major Player In Bitcoin ETF Market In an
X post on February 16, Brian Armstrong shared specific highlights
of Coinbase’s achievement in Q4 2023. In particular, He noted that
the American crypto exchange has played a crucial part in
facilitating the adoption of cryptocurrencies by traditional
financial firms (TradFi). A major part of this adoption is the
Bitcoin ETF market which is worth $37 billion, ranking as the
second largest commodity ETF market after Gold. Armstrong noted
that Coinbase has played a significant role in this development,
serving as custodian for 90% of the investment funds in the Bitcoin
ETF market. A few thoughts on our Q4 Earnings yesterday: 2023 was a
great year for Coinbase and we’re in a strong financial position.
We cut costs by 45% y/y and shipped products faster with a leaner
team driving $95 million of positive net income for 2023, $964
million in positive Adj.… pic.twitter.com/XK8f0EQBdP — Brian
Armstrong 🛡️ (@brian_armstrong) February 16, 2024 For context, a
custodian is a regulated financial institution that holds
customers’ securities and assets, providing protection against any
form of loss or theft. Notably, Coinbase is listed as the custodian
for eight of the 11 recently launched Bitcoin spot ETFs. These
include BlackRock’s IBIT, Ark Invest’s ARKB, Bitwise’s BITB, and
Grayscale’s GBTC, among others. These statistics indicate that
Coinbase is well placed to record larger milestones as the top
traditional financial institutions are tipped to finally invest in
Bitcoin ETFs, especially upon the proven success and stability of
the Bitcoin spot ETFs. According to Armstrong, other notable
Coinbase achievements in Q4 2024 include the launch of the
exchange’s international wing, and the layer-2 blockchain solution
Base. The crypto exchange also claimed to slash its annual costs by
45% while generating a total income of $3.1 billion. Related
Reading: Bitcoin ETFs Threaten Gold’s Dominance As Digitalization
Trends Gain Momentum Looking Forward To 2024 In retrospect to 2024,
Armstrong stated that Coinbase will maintain focus on its
international expansion and new derivatives products. In addition,
they will aim to promote the adoption of crypto payments by
transforming the Coinbase wallet into a super app. Finally,
the exchange CEO states that Coinbase will continue to advocate for
a clear regulatory framework applicable to the crypto space.
Armstrong says that Coinbase is committed to this course and is
willing to explore all means, including legal processes as well as
engaging the federal legislators. COIN trading at $180.28 on the
trading chart | Source: COIN chart on Tradingview.com Featured
image from CNBC, chart from TradingView
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