Coinbase Provides Bitcoin ETF Custodian Service In Australia

JAKARTA - The crypto exchange from the United States, Coinbase, now provides a custodian service for the new Bitcoin ETF launched by DigitalX in Australia. This ETF, named DigitalX Bitcoin ETF (BTXX), is the second Bitcoin ETF spot listed on the Australian Stock Exchange (ASX).

DigitalX announced that it had chosen Coinbase as a custodian service provider for BTXX. Launched on July 12, DigitalX ETF Bitcoin aims to provide a yield that reflects Bitcoin's performance by maintaining BTC's long-term holdings. This ETF is designed as a Bitcoin passive holder who will not make purchases except to facilitate the redeem and creation of Bitcoin interests.

Coinbase, which has become a major player in Bitcoin's global ETF infrastructure, strengthened its position by supporting the launch of this ETF in Australia. According to Cointelegraph information, previously Coinbase had become a partner and provider of custodials for 10 ETF Bitcoin spots and eight of the nine new Ether ETFs approved in the United States.

Coinbase, one of the largest crypto exchanges in the United States, has built a reputation as an institutional class custodian solution provider. With more than 12 years of experience in securing digital assets on a large scale, Coinbase claims to have developed the best custodian solution in the industry.

Major spot Bitcoin ETFs such as Grayscale Bitcoin Trust ETF (GBTC) and BlackRock's iShares Bitcoin Trust (IBIT) also rely on Coinbase as their Bitcoin custodian provider. In a statement on its website, Coinbase affirms its commitment to becoming the safest, easiest, and most trusted bridge to the crypto economy.

Global push for Bitcoin ETF approval has had a significant impact on the Australian market. ASX debuted its first Bitcoin ETF spot, VanEck Bitcoin ETF (VBTC), on June 20, 2024. VBTC allows Australians to invest in BTC via exposure to the Bitcoin Vaneck ETF in the United States, which is listed on the Chicago Board Options Exchange (CBOE).

Unlike Grayscale or BlackRock, VanEck chose to cooperate with the Gemini crypto exchange founded by theuglyvoss brothers as custodians, not Coinbase. After being listed on ASX on July 12, DigitalX Bitcoin ETF became the second approved Bitcoin ETF spot on the exchange after VanEck's listing in June.

With the support of big players like Coinbase and the launch of a new ETF by DigitalX, Australia's Bitcoin ETF market is showing significant growth potential. Investors' confidence in security and stability of investment in crypto assets through ETF is increasing, encouraging wider adoption among institutional and retail investors.