The crypto world is focused on the US Securities and Exchange Commission‘s (SEC) decision regarding spot Bitcoin ETFs, while the US-based giant crypto exchange Coinbase has made an important announcement. Coinbase has announced that they have made comprehensive preparations for the process following the approval of spot Bitcoin ETFs.
“We Have Made Comprehensive Preparations for the ETF Approval”
A Coinbase spokesperson stated, “We have made comprehensive preparations for the ETF approval,” adding that “Our systems are designed and tested to handle additional trading volume, increased liquidity, and the overall rise in demand on our systems.”
The spokesperson also mentioned that Aaron Schnarch, the president of Coinbase Custody, had left the company in recent weeks. Rick Schonberg, who has been with Coinbase since August 2021 and previously worked at Goldman Sachs, has replaced Schnarch.
Coinbase Custody is regulated by the New York Department of Financial Services and audited by Deloitte & Touche. The crypto exchange’s custody arm will be a vital part of the operations for potential spot Bitcoin ETF issuers like BlackRock.
Spot Bitcoin ETF Approval and Coinbase
As is known, the SEC has not been keen on approving a Bitcoin ETF in the US, citing various concerns and consistently rejecting applications. However, US courts have put pressure on the regulatory agency to approve spot Bitcoin ETFs in a manner that cannot be ignored. Consequently, excitement has increased in the crypto market, especially for Bitcoin. The first approvals for spot Bitcoin ETFs are now expected to come in January 2024.
The announcement from Coinbase that “we have made our preparations for the spot Bitcoin ETF” is quite significant as it seems to indicate that the expected approval from the SEC is almost certain to happen.
According to Bloomberg, Coinbase is the most popular choice for asset custody among Bitcoin ETF applicants following any approval. In October of this year, Coinbase’s Chief Legal Officer Paul Grewal expressed his confidence that the SEC would approve a spot Bitcoin ETF.
