According to recent disclosures, Coinbase has secured an astounding 90% of its total investment funds, carving out a sizable space for itself in the quickly expanding Bitcoin ETF market. During the company’s Q4 2023 earnings call, CEO Brian Armstrong revealed this supremacy, highlighting Coinbase’s expanding importance in bridging the gap between traditional finance and the cryptocurrencycurrency sector.
Bitcoin ETF Custody Crown
The Bitcoin ETF market has grown rapidly, and with a total market value of $37 billion, it presently ranks second among commodity ETFs. In this rapidly developing market, Coinbase has established itself as a key player by acting as custodian for eight of the eleven newly introduced Bitcoin spot ETFs.
Industry heavyweights including Bitwise, Ark Invest, BlackRock, and Grayscale are involved in these custodial agreements. But what does it mean to be a custodian exactly? To put it simply, Coinbase is a regulated financial institution that protects the underlying Bitcoin holdings that these exchange-traded funds are backed by. This increases the level of trust and security.
This calculated action is in line with Coinbase’s overarching goal of encouraging mainstream financial institutions to adopt cryptocurrencycurrencies. Given the original Bitcoin spot ETFs’ reliability and performance, many analysts predict that other major names will join the race, which might result in even bigger milestones for Coinbase.
In addition to its dominance in custody, the exchange has additional achievements from Q4 2023. These include the Base layer-2 blockchain solution and the triumphant introduction of its worldwide wing. Furthermore, Coinbase produced a healthy $3.1 billion in revenue while reducing annual expenses by 45%.
Coinbase Vision for 2024
Armstrong lays forth bold goals for 2024 in the future. The launch of new derivatives goods and international expansion continue to be major priorities. He also plans to make Coinbase a “super app” in order to increase the use of cryptocurrencycurrency payments.
And last, Coinbase continues to face significant challenges in the area of regulatory certainty. Armstrong restates the exchange’s dedication to pushing for precise and definite laws pertaining to the cryptocurrencycurrency industry. He stresses that Coinbase is prepared to take all necessary steps to accomplish this aim, including contacting federal lawmakers and taking legal action.
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