Spot Bitcoin ETFs Approval Could Unlock Crypto For New Investor Types, Says Coinbase Exec: 'Much Greater Than Just Enabling New Capital'
Portfolio Pulse from Benzinga Neuro
Coinbase Inc. (NASDAQ:COIN) has indicated that the approval of spot Bitcoin ETFs in the U.S. could attract a new class of investors, including institutional and retirement funds. The Coinbase report suggests that such approval would simplify the investment process for large institutions, enhance market liquidity, and improve price discovery. David Duong of Coinbase sees this as an opportunity for new product development and wider crypto adoption. The report also mentions that billions could be added to the crypto market cap, and with current economic conditions, Bitcoin could become a more viable alternative. The SEC is nearing a decision on approving the first U.S. spot Bitcoin ETF, with firms like BlackRock, WisdomTree, and Valkyrie in the queue, potentially by 2024. Bitcoin's price has surged in anticipation, reaching $37,970 last week.
November 15, 2023 | 9:15 am
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Coinbase Inc. (NASDAQ:COIN) anticipates that the approval of spot Bitcoin ETFs could bring new institutional investors and retirement funds to the crypto market, potentially increasing the company's customer base and market cap.
Coinbase's business could significantly benefit from the approval of spot Bitcoin ETFs as it would likely increase the number of institutional clients and funds flowing into the crypto market, which Coinbase operates in. The anticipation of such approval is already positively affecting Bitcoin's price, which could indirectly benefit Coinbase's trading volumes and revenues.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90