Coinbase Ready To Be Bitcoin ETF Storer, Waits For SEC Decision

JAKARTA - Coinbase, one of the largest crypto exchanges in the world registered with the Nasdaq code COIN, admits that it is ready to face the possible approval of the Exchange-Trad Fund (ETF) Bitcoin by the United States (US) capital market authorities, Securities and Exchange Commission (SEC).

Bitcoin ETF is an investment product that tracks the price of Bitcoin directly and allows investors to participate in the crypto market without having to own their own Bitcoin.

According to a Bloomberg report, Coinbase has made extensive preparations to become a Bitcoin store for Bitcoin ETF issuers. Storers are an institution responsible for storing assets that form the basis of the ETF, in this case Bitcoin. Coinbase claims that their systems have been designed and tested to deal with increasing trading volume, liquidity, and demand on their systems.

Many Bitcoin ETF publishers who have applied to the SEC have referred to Coinbase as their Bitcoin store. Some of them are Blackrock, the world's largest asset manager, Ark Invest, Bitwise, Wisdomtree, and Invesco.

Coinbase spokesman Rick Schonberg, who recently replaced Aaron Schnarch as Coinbase Global Inc.'s Head of Storage, said:

"We have prepared extensively for ETF approval... Our system has been designed and tested to deal with increased volume of trade, increased liquidity, and increased demand in general on our system."

The SEC is currently considering 13 Bitcoin ETF proposals. The first deadline for the SEC to make a decision is January 10, 2024, which applies to a joint application filed by Cathie Wood's ARK Invest and 21Shares.

Many analysts and observers predict that the SEC will agree to several Bitcoin ETF applications simultaneously, to avoid providing special treatment to one of the publishers.

The Bitcoin ETF approval in the US could provide a major boost to the crypto market, which is currently undergoing a correction. Bitcoin prices fell from an all-time high of above $69,000 in November 2023 to around $46,000 today. Bitcoin ETF can attract retail and institutional investors, as well as increase market liquidity and transparency.