Coinbase Custody Services Will Access 8 New Spot Ethereum ETFs

Key Points:

• Coinbase custody services will be provided for Ethereum ETFs upon SEC approval.
• Market maker Wintermute predicts up to $4 billion in investor funds for spot Ethereum ETFs over the next year, despite regulatory restrictions on pledging cryptocurrency holdings.

In a significant development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has approved 9 spot Ethereum ETFs.

Read more: Ethereum ETF Trading Will Be Approved on July 23

Coinbase Custody Services Will Be Provided for New Ethereum ETFs

The approval marks a critical milestone in the ongoing evolution and regulatory acceptance of cryptocurrency assets.

Coinbase, a leading cryptocurrency trading platform, has been named as the trusted partner and custodian for 8 of 9 newly approved spot Ethereum ETFs. Previously, Coinbase custody services were granted for 10 spot Bitcoin ETFs.

Among the applicants for Bitcoin ETFs utilize Coinbase’s services are major financial institutions like BlackRock, Franklin Templeton, and Grayscale Investments. The role of Coinbase custody services is crucial as it ensures the secure preservation of tokens for investors.

The SEC approval follows the agency’s green light for the first spot Bitcoin ETF earlier this year, highlighting a period of significant progress for cryptocurrencies. The approval of spot Ethereum ETFs indicates a maturing regulatory environment and underscores the ongoing innovation within the crypto industry.

Spot Ethereum ETFs to Attract Significant Investments Despite Regulatory Hurdles

Initially, firms aiming to launch their spot Ethereum ETFs received the SEC’s approval of 19b-4 forms in May. However, these firms needed their registration statements to go effective before launching. The approval process took an unexpected turn when the SEC, after minimal initial engagement, began notifying exchanges about their approval impendings just a week before the deadlines.

Despite the promised regulatory advancements, market reactions have been mixed. Market maker Wintermute forecasts that spot Ethereum ETFs might attract up to $4 billion from investors over the next year. This is lower than the anticipated $4.5 billion to $6.5 billion and significantly less than the $17 billion raised by Bitcoin ETFs in the first six months of trading. Nevertheless, Wintermute predicts a 24% rise in Ether’s price over the next year, driven by these investments.