Leadership changes have swept through Coinbase Custody as the crypto giant readies itself for involvement with spot Bitcoin exchange-traded funds (ETFs). Aaron Schnarch, the former head of Coinbase Custody, recently departed from his role, confirmed by a spokesperson. Rick Schonberg stepped in as CEO in August, bringing his experience from Goldman Sachs, State Street, and Tagomi.
Coinbase stands out as the go-to custodian for various Bitcoin ETF applicants, including big names like BlackRock, Franklin Templeton, and Grayscale Investments, according to Bloomberg Intelligence. These custody services hold significant importance for potential spot-Bitcoin ETF managers, serving as the safeguard for investors’ tokens.
A Coinbase spokesperson emphasized their thorough preparation for ETF approval, citing system readiness to handle increased trading volume, liquidity, and overall demand. Operating as a trust company, Coinbase Custody falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche.
The competition to secure US regulatory approval for the first direct investment ETF in the primary cryptocurrency approaches a crucial phase. The US Securities and Exchange Commission faces a looming Jan. 10 deadline to decide on applications like Cathie Wood’s ARK Investment Management LLC and 21Shares, among others.
Coinbase’s stock has significantly benefited from this year’s crypto market resurgence, marking an impressive surge of nearly 400% in 2023. As of 1:53 p.m. New York time, however, the shares had dipped 6% to $175.29.
