Coinbase Holdings Changes Lead Ahead of Bitcoin ETF Decision: Report
A game of musical chairs is underway on Wall Street ahead of a decision on whether to allow a Bitcoin (BTC) exchange-traded fund (ETF), with Coinbase reportedly replacing the leadership of its watchdog. According to Bloomberg, Aaron Schnark recently announced his resignation as CEO of Coinbase Custody.
Schnarch has been leading the company since June 2022, but has now been replaced by senior fintech executive Rick Schoenberg as Coinbase's head of protection, foundations and trading since 2021, according to his LinkedIn profile. Goldman Sachs, State Street and JPMorgan Chase are among his previous employers.
A Coinbase spokesperson told Bloomberg: “We are fully prepared for ETF approval. The company's systems are designed and tested to accommodate increased transaction volume, increased liquidity and overall increased demand on our systems.”
Coinbase Custody is a trust company, which means it acts as a legal custodian of assets, ensuring that they are managed and distributed according to the owner's wishes or legal requirements. The company is regulated by the New York Department of Financial Services, and is audited by Deloitte & Touche.
Related: SEC's Bitcoin ETF Update Deadline Today: Cash-Generate in Kind
Coinbase holds Bitcoin ETFs on behalf of multiple asset managers that protect digital tokens if they are approved by the United States Securities and Exchange Commission.
The news comes just days after Digital Currency Group founder Barry Silbert stepped down from Greyscale's board of directors. According to some crypto market analysts, Silber's departure could increase the chances of Greyscale converting the Greyscale Bitcoin Trust into a spot Bitcoin ETF.
The SEC has rejected many applications in the past, but the weight of the applicants and a recent court decision may result in a different outcome this time. Companies in line for regulatory approval include financial giants such as BlackRock, Franklin Templeton and Grayscale Investments – all of which plan to use Coinbase Custody to store Bitcoin.
Bloomberg ETF analyst Eric Balchunas expects a positive decision on Jan. 9 and trading to begin around Jan. 11. The prospect is pushing Bitcoin prices skyward, with the cryptocurrency reaching 160% by 2023.
Magazine: How to protect your crypto in a volatile market — Bitcoin OGs and experts weigh in.
