Crypto exchange Coinbase says that it has “extensively prepared” for spot bitcoin exchange-traded fund (ETF) approvals by the U.S. Securities and Exchange Commission (SEC). Most spot bitcoin ETF applicants have named the Nasdaq-listed crypto platform as the custodian for their bitcoin.
Coinbase Gets Ready for Spot Bitcoin ETF Launches
As the deadline approaches for the U.S. Securities and Exchange Commission (SEC) to decide whether to approve a spot bitcoin exchange-traded fund (ETF), Coinbase (Nasdaq: COIN) says it has extensively prepared its systems to custody BTC for spot bitcoin ETF issuers.
Most spot bitcoin ETF applicants have named the Nasdaq-listed crypto platform as the custodian of their bitcoin, including Blackrock, the world’s largest asset manager, Ark Invest, Bitwise, Wisdomtree, and Invesco. A Coinbase spokesperson told Bloomberg Friday:
We have extensively prepared for ETF approval … Our systems have been designed and tested to handle added trading volume, increased liquidity and general increases in demand on our systems.
The spokesperson also confirmed that Coinbase Global Inc.’s head of custody, Aaron Schnarch, recently departed the firm and has been replaced by Rick Schonberg.
The SEC is currently considering 13 proposed spot bitcoin ETFs. The first deadline is Jan. 10 for the joint application submitted by Cathie Wood’s ARK Invest and 21shares. Many expect the regulator to approve multiple applications by that date. The SEC gave spot bitcoin ETF issuers until last Friday to submit amended filings to be considered for the initial round of decisions in early January.
Coinbase has been pushing for the SEC to give clear crypto regulation. However, the firm faced a setback when the securities regulator rejected its petition earlier this month. In response, the crypto exchange has taken the matter to court, filing with the Third Circuit “to challenge the SEC’s arbitrary and capricious denial” of its petition for crypto rulemaking.
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