Coinbase Custody now reportedly owns more than 90% of all Bitcoin ETFs in the United States. This development was revealed by the cryptocurrency exchange’s CEO Brian Armstrong while reviewing the company’s performance in the fourth quarter (Q4) of 2023.
Coinbase is becoming a major player in the Bitcoin ETF market
In an X-post on February 16, Brian Armstrong shared specific highlights of Coinbase’s performance in the fourth quarter of 2023. In particular, he noted that the US crypto exchange has played a crucial role in facilitating the adoption of cryptocurrencies by traditional financial companies (TradFi).
A key part of this adoption is the Bitcoin ETF market, which is worth $37 billion and is the largest commodity ETF market after gold. Armstrong noted that Coinbase has played a major role in this development, serving as the custodian for 90% of the mutual funds in the Bitcoin ETF market.
A few thoughts on our Q4 earnings from yesterday:
2023 has been a great year for Coinbase and we are in a strong financial position. We reduced costs by 45% year-over-year and shipped products faster with a leaner team that generated $95 million in positive 2023 net revenue, $964 million in positive Adj.… pic.twitter.com/XK8f0EQBdP
— Brian Armstrong ????️ (@brian_armstrong) February 16, 2024
For context, a custodian is a regulated financial institution that holds customers’ securities and assets and provides protection against any form of loss or theft. Notably, Coinbase is listed as the custodian for eight of the eleven recently launched Bitcoin spot ETFs. These include BlackRock’s IBIT, Ark Invest’s ARKB, Bitwise’s BITB, and Grayscale’s GBTC.
These statistics indicate that Coinbase is well positioned to make bigger milestones as major traditional financial institutions are tipped to finally invest in Bitcoin ETFs, especially due to the proven success and stability of the Bitcoin spot ETFs.
According to Armstrong, Coinbase’s other notable achievements in the fourth quarter of 2024 include the launch of the exchange’s international wing and the layer-2 blockchain solution Base. The crypto exchange also claimed to reduce its annual fees by 45% while generating a total income of $3.1 billion.
I’m looking forward to 2024
Looking back to 2024, Armstrong stated that Coinbase will continue to focus on its international expansion and new derivatives products. In addition, they want to promote the adoption of crypto payments by transforming the Coinbase wallet into a super app.
Finally, the exchange’s CEO states that Coinbase will continue to advocate for a clear regulatory framework governing the crypto space. Armstrong says Coinbase is pursuing this course and is willing to explore all avenues, including legal proceedings and involving federal lawmakers.
COIN trading at $180.28 on the trading chart | Source: COIN chart on Tradingview.com
Featured image from CNBC, chart from TradingView
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