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Coinbase, the most important cryptocurrency change within the United States, is presently serving because the custodian of nearly all of the Spot Bitcoin ETFs managed by numerous asset administration firms within the business. This notable focus is elevating worries within the crypto group about important centralization and potential dangers related to the custodianship. 

Coinbase Dominate ETFs As Major Custodian

Coinbase’s important position within the development of Spot Bitcoin ETFs has turn into a goal of scrutiny within the crypto group. The American crypto change is at the moment the custodian of 9 out of 11 Spot Bitcoin ETF firms, together with BlackRock, Grayscale, Ark/21 Shares, Bitwise, WisdomTree, Invesco/Galaxy, Valkyrie, GlobalX, and Franklin Templeton. 

Notably, solely Fidelity and VanEck have opted for different custodianship approaches. Fidelity is using a self-custody program for its Spot Bitcoin ETF, whereas VanEck has chosen Gemini, a crypto change, because the custodian for its Spot BTC ETF. 

The outstanding position of Coinbase as the foremost custodian for Spot BTC ETFs has raised critical questions and issues within the crypto group. Specifically, Gabor Gurbacs, Director of Digital Assets Strategy at VanEck, has deemed Coinbase’s concentrated stage of custodianship to be a “double-edged sword.” 

Gurbacs said that Coinbase would bear substantial duty as the first custodian for Spot Bitcoin ETFs and would reap important advantages from it. However, he additionally hinted at potential counterparty risks related to concentrating belongings inside a single entity. 

Similarly, a crypto analyst on X (previously Twitter) highlighted the potential for elevated scrutiny from the United States Securities and Exchange Commission (SEC) relating to Coinbase, given its outstanding place within the Spot Bitcoin ETF market. The crypto change is presently in a legal battle with the SEC, and lots of crypto fanatics believe that Coinbase’s regulatory challenges might pose a risk to the success of Spot BTC ETFs. 

BTC worth breaks $43,000 | Source: BTCUSD on Tradingview.com

Coinbase CFO Bullish On Bitcoin ETFs

The Chief Financial Officer of Coinbase, Alesia Haas appeared lately in an interview on Bloomberg TV, discussing the results of Spot Bitcoin ETFs within the crypto market. 

When requested if the momentum of Spot Bitcoin ETFs would turn into a “game-changer” sooner or later, Haas responded confidently with a powerful “absolutely.”

The Coinbase CFO declared that the SEC’s approval of Spot Bitcoin ETFs was an necessary day for crypto, because it positions Bitcoin into a much wider investable asset class. She additionally revealed that the deployment of Spot Bitcoin ETFs would enable traders to have higher entry to BTC merchandise, extending its attain to billions of individuals across the globe and growing the quantity of inflows into ETFs. 

Featured picture from Ripples Nigeria, chart from Tradingview.com

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