Coinbase’s CEO considers the impact of approved spot-traded Bitcoin (BTC) funds.
In a new interview on CNBC Squawk Box, Coinbase CEO Brian Armstrong says the spot BTC ETFs will bring new sources of capital to the crypto market.
“This is a monumental step for the crypto industry and also for Coinbase. And the reason is that 52 million Americans have used crypto in the last decade. And I think they’re hungry for some kind of recognition from the government and from the SEC (US Securities and Exchange Commission) in particular that this asset class is here to stay. And they finally got that. It took a long time.
I want to give a big shout out to Grayscale, one of the companies that pursued this in court to finally make it happen, but it finally happened. A number of ETFs have been approved [Wednesday]. And of course, it was a big day for Coinbase as well, as we were named as a custodian in 10 out of 13 of these filings. So I think this means that we will see new capital flows appear in Bitcoin over time.
But more importantly, we had a huge regulatory milestone that demonstrated the legitimizing power of this sector.”
Armstrong believes that once new users enter the crypto space through the spot BTC ETF product, their involvement with digital assets will increase rapidly.
“This ETF is really about unlocking new pools of capital that were previously unavailable. They had no way to get exposure to crypto and so now they can come and get exposure to Bitcoin. That is amazing. New sources of capital are coming in. But that’s actually the first step in people’s journey around crypto…
I think a lot of them will leave the ETFs and actually hold them directly and then start using them straight away.”
Coinbase’s CEO predicts that spot BTC ETFs will lead to a wide range of additional crypto-related financial products.
“I think this will hopefully pave the way for other crypto assets to have their own ETFs. And then, honestly, we should also have crypto asset index funds like the S&P 500. Hopefully one day it might be the Coinbase 500 or something like that.
And you can even imagine different index funds that focus on DeFi (decentralized finance) or staking or NFTs (non-fungible tokens) or different subsets of the crypto market. This is a very important new area in the financial markets and I think there will be all kinds of new products coming to market next.”
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