Coinbase CEO: Coinbase Custody Holds 90% of $37 Billion Bitcoin ETF Assets

Coinbase CEO: Coinbase Custody Holds 90% of $37 Billion Bitcoin ETF Assets

Coinbase CEO: Coinbase Custody Holds 90% of $37 Billion Bitcoin ETF Assets

Brian Armstrong, CEO of the US cryptocurrency exchange Coinbase, shared his thoughts on the fourth-quarter financial report released yesterday on the X platform. He stated that Coinbase’s financial situation in 2023 is very robust, with a 45% reduction in costs and faster product delivery with a leaner team, resulting in a net profit of $95 million.

Armstrong mentioned that the company launched Coinbase International Exchange, derivative products, and the second-layer network Base that helps blockchain scaling last year. It also played a crucial role as a custodian for eight out of eleven ETF issuers in the approval of Bitcoin spot ETFs. He wrote that Coinbase’s goals for 2024 include focusing on increasing transaction fee revenue through international expansion and derivative products, facilitating payments such as free instant transfers on the Base network using USDC, and developing Coinbase Wallet into an on-chain super app to drive the utility of cryptocurrencies. The exchange will also continue to promote regulatory clarity for cryptocurrencies through courts, crypto advocacy group Stand With Crypto, SuperPac donations, and encouraging US government legislation.

According to CoinDesk, Morgan Stanley analyst Kenneth Worthington expressed doubts about the strength of these benefits as claimed by the exchange, despite the launch of ten Bitcoin spot ETFs contributing to Coinbase’s better-than-expected fourth-quarter revenue performance. In a report on Friday, Worthington specifically criticized Coinbase’s lack of clarity in this business, including providing custodial services for eight Bitcoin ETFs. He believed that considering the media’s attention and market expectations for Bitcoin spot ETFs, especially considering Coinbase’s direct involvement and monetization efforts, the exchange’s management should provide more robust insights into the economic factors related to agreements with issuers.

Related Reports: “Coinbase Exceeds Fourth-Quarter Revenue Expectations, Stock Price Rises Over 14% After Hours”