Coinbase Custodian Manages 90% of Bitcoin ETF Assets Alone

As a qualified custodian, Coinbase holds a sizable share, overseeing approximately 90% of the total assets of the Bitcoin ETF.

Coinbase reported impressive Q4 2023 results, leading to a sharp rise in the COIN stock price. In a recent statement, Coinbase CEO Brian Armstrong revealed interesting insights into the vast majority of bitcoin ETF assets held in its custody solution.

Coinbase Custodies 90% of Bitcoin ETF Assets

Coinbase CEO Brian Armstrong highlighted the positive impact of traditional finance embracing cryptocurrencies as a noteworthy development.Whatsminer Miner

Armstrong revealed that bitcoin exchange-traded funds (ETFs) have become the second-largest commodity ETF in the U.S., behind gold. Notably, Coinbase currently serves as the custodian for approximately 90 percent of the $37 billion worth of assets held by the Bitcoin ETF. This marks the platform’s key role in facilitating institutional investment in the cryptocurrency market.

Coinbase Custody is a regulated entity and a qualified custodian. However, this raises the question of whether an entity should hold the vast majority of Bitcoin ETF assets. Seeing strong inflows into Bitcoin ETFs, U.S. banks have also begun to show interest in providing cryptocurrency custody solutions. Since most U.S. banking institutions operate under the jurisdiction of the U.S. Securities and Exchange Commission, they may be approved in the future.

A new report from Coinbase highlights the massive inflow of institutional money into the 11 existing spot bitcoin ETFs in the U.S., totaling more than $4.2 billion so far this year. The report emphasizes that institutional investors’ adjustment to the new exchange-traded fund (ETF) landscape is expected to set a solid foundation for Bitcoin’s market dynamics.

Future Plans for 2024

Coinbase CEO Brian Armstrong outlined the company’s strategic priorities for 2024. These include expanding transaction fee revenue through international growth and derivatives, enhancing the utility of cryptocurrencies through payment solutions such as instant free USDC transfers on Base, and evolving Coinbase Wallet into a comprehensive on-chain mega-application.Litecoin DOGE Miner

Additionally, Coinbase aims to continue to advocate for regulatory clarity in the cryptocurrency space through legal avenues, continue to contribute to SuperPAC, and promote favorable legislation in Washington, DC.

Armstrong emphasized Coinbase’s strong financial position and its commitment to compliance, which has proven to be an advantage over its competitors. With these foundations in place, Coinbase will be able to drive cryptocurrency adoption and contribute to the development of the global financial system.