According to Bloomberg, Coinbase Global has recently undergone a leadership change within its custody division. 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 aligns with Coinbase's efforts to offer services to bitcoin (btc) spot seekers. exchange traded funds (ETF).
Coinbase Claims Prepared for bitcoin ETF Approval
Rick Schonberg, who joined Coinbase in 2021, aims to bring experience to his new role, having previously worked at renowned financial institutions such as Goldman Sachs, State Street, and Tagomi. bitcoin-etf-race” target=”_blank” rel=”nofollow”>according to Bloomberg.
Coinbase, on the other hand, has become 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 bitcoin spot ETF managers, as investors rely on these providers to safely safeguard their digital tokens.
Notably, a Coinbase spokesperson emphasized the company's readiness for ETF approval, telling Bloomberg:
We have prepared extensively for ETF approval. Our systems have been designed and tested to handle increased trading volume, increased liquidity, and general increases in demand for our systems.
Coinbase Custody, which operates as a trust company, is part of the regulatory oversight from the New York Department of Financial Services and is audited by Deloitte & Touche.
Countdown to a 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 US Securities and Exchange Commission (SEC) faces a January 10 deadline to decide whether to approve a bitcoin spot ETF application filed by ARK Investment Managementled by Cathie Wood, and 21Shares, along with other potentially similar filings.
Overall, the departure of Aaron Schnarch and the subsequent appointment of Rick Schonberg within Coinbase Custody highlights the company's strategy in the face of growing demand for custody services from bitcoin ETF applicants.
With the possible approval of bitcoin spot ETFs on the horizon, the industry is anxiously awaiting the SEC's decision, which will have far-reaching implications for the widespread adoption and acceptance of cryptocurrencies.
bitcoin, the largest cryptocurrency on the market, is currently trading at $42,100, representing a drop of 1.1% in the last 24 hours.
In recent weeks, btc price has been consolidating above $40,000, showing sideways movement since early December. However, it has achieved a notable gain of over 11% in the last 30 days.
It remains to be seen how the btc price will react to the possible approval of these index funds by the world's largest asset managers, and what other impact it will have on the broader crypto market.
Featured image from Shutterstock, chart from TradingView.com
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