Coinbase’s CEO says the crypto exchange will get a boost as new capital enters the space through Bitcoin (BTC) exchange-traded funds.
In a new interview on CNBC Television, Coinbase CEO Brian Armstrong says the expected BTC ETFs will soon flood the crypto industry with institutional capital and new users, complementing the premier US crypto exchange.
He also notes that most ETF filings list Coinbase as the custodian for the BTC.
“Any time a new technology or a new product comes to market, you always have to ask yourself, ‘What percentage of this is a replacement for what came before it, and what percentage is a complement?’
Of course, it’s usually never 100% one or the other. I think in this case it is mainly a compliment. You could say it’s 80/20 somehow, something like that. Our goal with crypto is to connect it to all parts of the economy. We want the enormous pools of capital that reside in endowments, institutions and pension funds.
They should all be able to participate in this new asset class, which is why I think it will mainly be a supplement. We will see large amounts of new capital coming into crypto. I think this is one of the reasons why we have seen the price of Bitcoin rise 90% this year in anticipation of this.”
Armstrong goes on to say that both retail and blue-chip investors are likely to want to own more than just BTC ETFs and will flock to crypto exchanges like Coinbase to access other products.
“There will also be a huge retail and institutional segment – they don’t just want to own an ETF for Bitcoin, they want to own other crypto assets, or they want to earn staking rewards on their assets, or they want to actually participate in the crypto economy [via] stablecoins, trading, NFTs (non-fungible tokens) and web3.
So those people will come to Coinbase and use our product directly as well. So Coinbase has a role to play in all aspects of the value chain.”
I
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/fran_kie
