Coinbase at the Center of Bitcoin ETF Draws Envy and Risks
- Coinbase provides custody, trading, financing for ETF issuers
- Arrangements pose concentration risk, may intensify scrutiny
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The debut of US spot-Bitcoin ETFs thrusts Coinbase Global Inc. into the center of crypto’s biggest mainstream moment to date. Yet what may seem like an enviable position also creates a welter of risks for the company and its partners.
The first exchange-traded funds investing directly in Bitcoin began trading last week after the US Securities and Exchange Commission finally approved applications from almost a dozen investment firms, including heavyweights such as BlackRock Inc. and Franklin Templeton. The launches, which follow a years-long industry push, were heralded as a pivotal development that will stoke broader adoption of the world’s biggest cryptocurrency.