According to Bloomberg, Coinbase Global has recently experienced a change in leadership within its company guardianship department. The departure of Aaron Schnarch, former CEO of Coinbase Custody, has been confirmed by a spokesperson, who also revealed that Schnarch was replaced by Rick Schonberg in August.
According to the report, the transition is in line with Coinbase’s efforts to offer services to spot Bitcoin (BTC) applicants. exchange traded funds (ETFs).
Coinbase Confirms Willingness to Approval Bitcoin ETF
Rick Schonberg, who joined Coinbase in 2021, is looking to gain experience in his new role, having previously worked at renowned financial institutions such as Goldman Sachs, State Street and Tagomi. according to to Bloomberg.
Coinbase, on the other hand, has emerged as the preferred choice for custody services among Bitcoin ETF applicants, including industry giants like Black rockFranklin Templeton and grayscale investments.
Custodial services play a crucial role for potential managers of spot Bitcoin ETFs, as investors trust these providers to safely protect their digital tokens.
A Coinbase spokesperson specifically highlighted the company’s readiness for ETF approval, telling Bloomberg:
We have prepared extensively for the approval of ETFs. Our systems are designed and tested to handle increased trading volume, greater liquidity and an overall increase in demand for our systems.
Coinbase Custody, operating as a trust company, falls under the regulatory oversight of the New York Department of Financial Services and is audited by Deloitte & Touche.
Countdown to historic decision
The race to gain regulatory approval for the first ETF to invest directly in the largest cryptocurrency, Bitcoin, is entering a critical phase.
The U.S. Securities and Exchange Commission (SEC) faces a January 10 deadline to decide whether to approve a spot Bitcoin ETF application filed by ARK Investment Managementled by Cathie Wood, and 21Shares, along with possibly other similar docs.
Overall, Aaron Schnarch’s departure and Rick Schonberg’s subsequent appointment within Coinbase Custody highlight the company’s strategy for the growing demand for custody services from Bitcoin ETF applicants.
With the potential approval of spot Bitcoin ETFs on the horizon, the industry is eagerly awaiting the SEC’s decision, which will have far-reaching implications for the adoption and mainstream adoption of cryptocurrencies.
Bitcoin, the largest cryptocurrency on the market, is currently trading at $42,100, down 1.1% in the past 24 hours.
The past few weeks have been BTC price consolidating above $40,000 and showing sideways movement since early December. However, it has made a remarkable gain of over 11% in the past 30 days.
It remains to be seen how the price of BTC will react to the possible adoption of these index funds by the world’s largest asset managers, and what other impact this will have on the overall crypto market.
Featured image from Shutterstock, chart from TradingView.com
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