As the U.S. Securities and Exchange Commission (SEC) nears its decision on the approval of a spot bitcoin exchange-traded fund (ETF), Coinbase (COIN) asserts that it has thoroughly readied its systems to securely handle BTC custody for potential spot bitcoin ETF issuers.
A majority of spot bitcoin ETF applicants, such as Blackrock, the world’s largest asset manager, Ark Invest, Bitwise, Wisdomtree, and Invesco, have designated the Nasdaq-listed crypto platform as the custodian for their bitcoin. A spokesperson from Coinbase informed Bloomberg on Friday:
“We have extensively prepared for ETF approval… Our systems have undergone meticulous design and testing to accommodate increased trading volume, enhanced liquidity, and overall heightened demand on our systems.”
The spokesperson also confirmed the recent departure of Coinbase Global Inc.’s head of custody, Aaron Schnarch, who has been succeeded by Rick Schonberg.
Currently, the SEC is evaluating 13 proposed spot bitcoin ETFs, with the first deadline set for Jan. 10 for the joint application from Cathie Wood’s ARK Invest and 21shares. There is widespread anticipation for the regulator to greenlight multiple applications by that date. The SEC mandated spot bitcoin ETF issuers to submit amended filings by the previous Friday to be considered for the initial round of decisions in early January.
While Coinbase has been advocating for clear crypto regulation from the SEC, the company faced a setback when its petition was rejected by the securities regulator earlier this month. In response, the crypto exchange has taken legal action, filing with the Third Circuit to contest the SEC’s “arbitrary and capricious denial” of its petition for crypto rulemaking.