Coinbase Custody Shakeup: Preparing for Spot Bitcoin ETF Services

The head of custody at Coinbase Global Inc. has left the company, making way for changes as the crypto giant readies itself to offer services for spot Bitcoin exchange-traded fund applicants.

Aaron Schnarch, who served as the CEO of Coinbase Custody, departed recently, confirmed by a company spokesperson. His role was filled by Rick Schonberg back in August, as per the spokesperson. Schonberg, who joined Coinbase in 2021, previously held positions at Goldman Sachs, State Street, and Tagomi, as detailed in his LinkedIn profile.

Coinbase stands out as the leading choice for custodial services among Bitcoin ETF aspirants such as BlackRock, Franklin Templeton, and Grayscale Investments, based on Bloomberg Intelligence data. Custody services are crucial for potential spot-Bitcoin ETF managers as they play a vital role in safeguarding tokens, a responsibility that investors heavily rely upon.

“We’ve extensively prepared for ETF approval,” noted a Coinbase spokesperson in a statement, highlighting their readiness for increased trading volume, liquidity, and overall demand on their systems.

Functioning as a trust company, Coinbase Custody operates under the regulation of the New York Department of Financial Services and undergoes audits by Deloitte & Touche.

The race for the inaugural US regulatory approval for an ETF investing directly in the largest cryptocurrency is reaching a pivotal stage. The US Securities and Exchange Commission has a looming Jan. 10 deadline to decide on the spot Bitcoin ETF application submitted by Cathie Wood’s ARK Investment Management LLC, 21Shares, and potentially other similar filings.

Coinbase’s stock has witnessed significant gains amid this year’s resurgence in the crypto market, experiencing a surge of nearly 400% thus far in 2023.


Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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