Coinbase to Custody Eight Spot Bitcoin ETFs Following SEC Approval

Bitcoin Bitcoin ETF Coinbase

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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January 11, 2024 00:47 EST

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Coinbase has announced its official role as the custodian for eight of the newly approved spot Bitcoin exchange-traded funds (ETFs), following a monumental decision by the U.S. Securities and Exchange Commission (SEC).

According to a recent blog published by Coinbase, the SEC’s approval, which encompasses a total of 11 spot Bitcoin ETFs, is seen as a “watershed moment” for the growth of the cryptoeconomy. Coinbase’s custodianship of the ETFs also strengthens its presence in the new era.

Expanding Crypto Access via Regulated Bitcoin ETFs

“The SEC’s decision to approve 11 spot Bitcoin ETFs, eight of which are in partnership with Coinbase, represents a significant development in the integration of cryptocurrencies into mainstream financial markets,” stated the Coinbase blog.

“These ETFs will not only provide investors with access to spot crypto through a regulated product but also catalyze a new wave of crypto adoption, driven by the world’s largest asset managers,” wrote the blog.

As the biggest cryptocurrency enters what has been considered the traditional finance sector, Coinbase expects U.S. investors to diversify their investments by purchasing spot Bitcoin ETFs.

We should all be grateful to @Grayscale for pushing back against the SEC’s arbitrary and capricious behavior, and clearing the way to get these spot BTC ETFs over the finish line. And of course to the DC Circuit, for affirming that the rule of law must prevail over politics. 2/3

— paulgrewal.eth (@iampaulgrewal) January 10, 2024

“Until today, most of that pool of capital has lacked a direct path to invest in spot crypto, despite demand by investors including financial advisors,” the blog read. “Nearly half of US financial advisors own bitcoin personally, yet only 12% recommend it to their clients – the main reason being lack of an ETF.”

“By giving investors a convenient and familiar way to access spot crypto, ETFs will make crypto available to millions of new investors and further cement it as a mainstream asset,” it conlcuded.

Cathie Wood Criticizes SEC Chair Gensler’s Comments on Crypto Sector

The SEC’s eventual approval is encouraging, yet the commission’s breached social media account, false announcement, and Chair Gary Gensler’s attitude towards Bitcoin and crypto have led to backlashes.

“While we approved the listing and trading of certain spot Bitcoin ETP shares today, we did not approve or endorse Bitcoin,” said Gensler in a post.

ARK Invest CEO Cathie Wood expressed disappointment at the statement made by Gensler shortly after the SEC announced the approval of Bitcoin ETFs.

“He just denigrated the whole crypto space. I couldn’t believe it,” said Wood. “The old DNA basically bashing the new DNA.”