Coinbase To Support Valkyrie And Bitwise Bitcoin Spot ETFs: Report

Key Points:

• Coinbase partners with Valkyrie, Bitwise, and others for Bitcoin ETF services, potentially boosting revenue amid low crypto-exchange volumes.
• The exchange’s role as custody and market monitoring provider addresses fraud concerns, crucial for SEC approval of Bitcoin ETFs.
• Fidelity and other firms include Coinbase in revised filings, highlighting the significance of monitoring mechanisms for SEC approval and increasing token values.

According to Bloomberg, Coinbase will also supply services for Valkyrie and Bitwise’s bitcoin spot ETF, according to individuals familiar with the situation.

Coinbase’s partnership with the planned ETFs might result in an increase in income at a time when the crypto-exchange sector is experiencing low volumes. Coinbase’s revenue last year was less than half of what it was in 2021, when the sector was booming. The announcement also comes amid Coinbase’s legal fight with the SEC, which accused the company of operating an unlawful exchange.

Coinbase will become the custody-sharing agreement partner of Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust, Fidelity Wise Origin Bitcoin Trust, and ARK 21Shares Bitcoin ETF, according to recent reporting.

Fidelity Investments led a flurry of corporations that submitted a second batch of applications for a spot Bitcoin exchange-traded fund on Friday afternoon to add additional information after the US Securities and Exchange Commission suggested that the earlier files were inadequate.

The companies are among eight that are attempting to establish the first generation of US spot Bitcoin ETFs. In mid-June, BlackRock Inc. surprised the market by registering for such a fund.

All five that refiled on Friday said that Coinbase Global Inc. would offer market monitoring in support of their funds, which was not included in prior revisions.

Crypto market monitoring might be crucial in obtaining SEC clearance for a spot Bitcoin ETF. The monitoring may significantly minimize fraud and market manipulation, which have been the primary reasons the SEC has rejected about 30 spot Bitcoin ETF applications so far.

According to a source familiar with the subject who was not allowed to talk publicly about the arrangements, Coinbase is also in line to supply different services for the other planned fund issuers. These firms, in addition to BlackRock, include Valkyrie and Bitwise. In a recent filing, 21Shares said that Coinbase would also offer custody services.

The crypto community is ecstatic at the possibility of cryptocurrency possibly becoming more accessible to average investors, and the surge of filings has boosted token values.

Bitcoin reclaimed the $30,000 mark in June and is trading at nearly its highest levels in almost a year. The coin is now worth roughly $30,400.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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