Why Coinbase (COIN) Might Be Your Best Crypto Investment in 2024

Why Coinbase (COIN) Might Be Your Best Crypto Investment in 2024

Posted On January 9, 2024 10:25 am

Over recent years, Exchange Traded Funds (ETFs) have grown increasingly popular, presenting a diverse range of assets that include commodities, stocks, and indices. Within this mix, Bitcoin Spot ETFs offer regulated avenues for corporations and institutions to invest in cryptocurrency.

Bitcoin Spot ETFs have a specific goal: To track Bitcoin’s value through the possession of the actual digital currency. In essence, these ETFs function by acquiring Bitcoin and subsequently issuing shares based on the underlying cryptocurrency’s value. Therefore, Spot ETFs are engineered to afford investors direct access to Bitcoin’s price fluctuations.

However, the approval for Spot ETF is pending. On January 10, the U.S. Securities and Exchange Commission (SEC) will decide regarding the approval of Bitcoin Spot ETF applications that several firms have submitted.

As the world continually evolves, Coinbase Global, Inc. (COIN) goes far beyond mere adaptation – it spearheads change. COIN, a prestigious cryptocurrency exchange, offers trading, custody and other services for various digital assets. It is implementing savvy strategies and revamping its leadership team to prepare for what could be an industry-altering phenomenon: the sanctioning of Spot Bitcoin ETFs.

This bold move is motivated by a dynamic combination of anticipation and strategic readiness. COIN isn’t merely passively awaiting regulatory approval; it is actively orchestrating the environment for it.

Let’s see how…

COIN’s Leadership Shuffle and Strategic Readiness

The cryptocurrency sector is anticipated to extend custodial services to traditional financial institutions that have lodged applications for spot Bitcoin ETFs.

Recently, Aaron Schnarch departed from his role as CEO of Coinbase Custody, a trust company regulated by the New York Department of Financial Services and audited by Deloitte & Touche.

Mr. Schnarch left the company in August and was superseded by Rick Schonberg, according to the company representative. Mr. Schonberg has been part of COIN since 2021.

COIN is the preferred custodian among Bitcoin ETF contenders such as BlackRock, Franklin Templeton, and Grayscale Investments, based on Bloomberg Intelligence data.

For potential Spot Bitcoin ETF managers, custody services are crucial to their operation, as investors depend on these services to maintain the tokens securely. This need has prompted leading financial institutions to enlist COIN for these services on approval of their funds.

This shift in leadership signifies more than a mere change in staff – it represents a purposeful strategic shift. Schonberg, a seasoned pro with experience from Goldman Sachs, brings not just his expertise but also a significant vision – one where COIN doesn’t merely participate in the Spot Bitcoin ETF market but aims to dominate it.

COIN’s preparations for the anticipated approval of spot Bitcoin ETFs are comprehensive. They are creating a robust infrastructure capable of managing an expected increase in trading volume, liquidity, and overall market demand. Much like a dam built in anticipation of a flood, COIN eagerly awaits what may prove to be substantial market growth.

Anticipated Regulatory Decisions and Potential Market Implications

Let’s talk about the elephant in the room now…

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