As Coinbase undergoes changes in preparation for Spot Bitcoin ETFs, the exchange says it has “extensively prepared” for Bitcoin ETF approval. “We have extensively prepared for ETF approval,” a Coinbase spokesperson said in a statement. “Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.”
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Coinbase Global Inc.’s head of custody Aaron Schnarch left the company in recent weeks, the spokesperson added. He was replaced in August by Rick Schonberg, who has been with Coinbase since 2021 and previously worked with Goldman Sachs.
Coinbase Custody is regulated by the New York Department of Financial Services and audited by Deloitte & Touche. The custody services will be a vital part of operations for potential spot-Bitcoin ETF managers.
The SEC has long pushed back its decision on Bitcoin ETF approval in the US, citing multiple concerns. However, US courts have put pressure on the regulator to make a decision. Thus, the hype around the entire crypto market, specifically Bitcoin, has grown. Hence, approval of the first Spot Bitcoin ETFs is expected to come in January 2024.
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According to Bloomberg, Coinbase is the most popular choice for custodians among Bitcoin ETF applicants after any approval. Back in October, Coinbase Chief Legal Officer Paul Grewal expressed his confidence that the SEC would approve a Spot Bitcoin ETF. Now with approval looming, Coinbase hopes to be at the forefront for investment firms to take their newly approved ETFs.
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