Cryptocurrency exchange Coinbase claims to have “extensively prepared” for the Securities and Exchange Commission’s (SEC) approval of a spot bitcoin exchange-traded fund (ETF). The majority of spot bitcoin ETF candidates have designated the Nasdaq-listed crypto platform as their bitcoin custodian.
In the past three weeks, a cryptocurrency wallet associated with Donald Trump has reportedly transferred $2.4 million worth of Ether (ETH) to Coinbase, a popular cryptocurrency exchange. It is believed that the funds were likely sold on the platform. The identification of the… pic.twitter.com/KdQQPS1ht8
— Crypto Time (@cryptotimeaz) December 31, 2023
Coinbase Prepares for the Launch of a Spot Bitcoin ETF
As the Securities and Exchange Commission (SEC) deadline for approving a spot bitcoin exchange-traded fund (ETF) approaches, Coinbase (Nasdaq: COIN) claims it has thoroughly prepared its systems to custody BTC for spot bitcoin ETF issuers.
Most spot bitcoin ETF candidates, including Blackrock, the world’s largest asset management company, Ark Invest, Bitwise, Wisdomtree, and Invesco, have designated the Nasdaq-listed crypto platform as the custodian of their bitcoin. A Coinbase representative told Bloomberg on Friday:
JUST IN :: Coinbase undergoes a change at the helm of custody as it prepares to offer services for spot #BitcoinETF applicants, according to Bloomberg.
— Rohitash Yadav (CCM) (@RYadav8177) December 30, 2023
We have meticulously prepared for ETF approval… Our systems have been created and tested to manage increased trade volume, liquidity, and overall demand.
Additionally, the representative mentioned that Rick Schonberg has taken over as head of custody at Coinbase Global Inc. after Aaron Schnarch recently left the company.
The Securities and Exchange Commission is currently reviewing 13 proposed spot bitcoin ETFs. The first deadline for Cathie Wood’s ARK Invest and 21shares’ combined application is January 10. Many people anticipate that the agency will accept many petitions by that date.
Spot bitcoin ETF issuers had until last Friday to submit updated files to be considered for the initial round of decisions in early January, according to the SEC.
Coinbase has been lobbying the SEC for clear crypto regulation. However, the firm was dealt a setback earlier this month when the securities authority rejected their plea. In response, the crypto exchange has filed a lawsuit in the Third Circuit “to challenge the SEC’s arbitrary and capricious denial” of its petition for crypto regulation.
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