Coinbase Custody solutions have become the top preference for firms looking to offer Bitcoin ETFs in the US, including Ark Invest’s BTC ETF
Coinbase’s stock prices surged following the release of collaboration news with Ark
Multiple Bitcoin ETF approvals could act as a single primary bullish driver for the COIN stock.
JAIPUR (CoinChapter.com) — COIN, Coinbase’s publicly trading equity stock, is down by almost 30% since the crypto exchange’s official IPO debut in April this year.
However, things look brighter for COIN as the race to launch the US’s first Bitcoin exchange-traded fund (ETF) heats up. Coinbase’s cryptocurrency custody arm, Coinbase Custody, has found active takers amongst firms pushing BTC ETFs. One of them is the Cathie Wood-led asset management company Ark Invest.
COIN crashed right after its public listing on the Nasdaq Stock Exchange. Source: TradingView.com
Coinbase Custody is a secure, offline storage solution that engineers designed to provide superior protection for digital assets. In addition, it has in-built support for almost all tradeable cryptocurrencies. As per reports, Coinbase stock prices rallied 8.3% after Ark declared Coinbase Custody as a custodian for its Bitcoin ETF. In addition, Valkyrie Digital Assets announced a partnership with the institutional crypto custody provider for its BTC ETF fund in January.
Unlike neighboring Canada, Bitcoin ETF approvals in the US have hit the snag every single time. It stems from the SEC’s concern regarding the efficacy of digital asset storage solutions provided by crypto custodians. However, Coinbase Custody seems to be playing the game right and looks firmly positioned to douse the SEC’s crypto storage doubts.
Institutional demand for Coinbase Custody surging
Since December 31, 2020, Coinbase has registered a 170% appreciation in its institutional holdings.
Reports point to growth from $45 billion in Q4 2020 to $122 billion in the back of Q4 2021. The cryptocurrency exchange currently boasts 8000-strong institutional clientele – hedge funds, asset managers, corporate, pensions, and endowments.
And the common thread tying them all, apart from their crypto investment affinity, is Coinbase Custody. A bevy of crypto-ETPs signed up with Coinbase’s storage solution to access cryptocurrency markets in a way that doesn’t require physically holding assets.
Drew Robinson, Head of Hedge Fund Sales at Coinbase, had this to say to Institutional Asset Manager,
“Over the last 12 months, we have seen a growing interest from institutional investors seeking to take advantage of the crypto space. However, this year, interest from pension funds and hedge funds has skyrocketed, supported by the roll-out of crypto-ETPs and an increased understanding of the crypto economy.
Ark Invest’s partnership with Coinbase Custody posted a near 10% green blip in COIN spot rates. But the above presents the long-term bullish scenario for Coinbase’s share prices mainly because the exchange’s surging institutional client base could lead the SEC to greenlight Bitcoin ETFs leveraging its custody solution.
But What if…
Coinbase Custody is a centralized crypto asset repository and hosts a single point of failure that hackers can leverage to access the large deposit of institutional crypto funds.
In such a scenario, the SEC’s worst fears about protecting crypto assets could come true, and in turn, play spoilsport for the cryptocurrency exchange and its stock price.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
Enabled by technology and access to some of the world's cheapest data, retail investors now account for over 45%...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.