Coinbase Custody Accounts For 90% Of All Bitcoin ETFs Details
Coinbase Custody reportedly now holds over 90% of all Bitcoin ETFs in the United States. This development was revealed by the crypto exchanges CEO, Brian Armstrong, while appraising the companys performance in the fourth quarter (Q4) of 2023.
Coinbase Emerges As Major Player In Bitcoin ETF Market
In an X post on February 16, Brian Armstrong shared specific highlights of Coinbases 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 were 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 BlackRocks IBIT, Ark Invests ARKB, Bitwises BITB, and Grayscales 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 exchanges 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.
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.comRead more: https://www.newsbtc.com/coinbase/coinbase-custody-accounts-for-90-of-all-bitcoin-etfs-details/
Text source: NewsBTC
