Coinbase Custody CEO Steps Down Amid Bitcoin Spot Trading Anticipation
Summary:
Coinbase Custody sees a change in management as CEO Aaron Schnarch steps down and is succeeded by Rick Schonberg. This comes amid increased anticipation of Bitcoin spot trading approval on Wall Street by the U.S. Securities and Exchange Commission (SEC). Coinbase Custody is anticipated to serve as the secure storehouse for many asset managers' digital tokens, should this approval go through. Notably, the decision on spot Bitcoin ETFs is being awaited by major financial firms including BlackRock, Franklin Templeton, and Grayscale Investments.
Debate continues as Wall Street considers permitting Bitcoin (BTC) spot trading, with Coinbase reportedly reshuffling its executive team. Reportedly, Aaron Schnarch has stepped down from his role as CEO of Coinbase Custody, as stated by Bloomberg. Schnarch, who took the helm in June 2022, will be replaced by Rick Schonberg, a senior fintech executive leading custody, foundations, and trading at Coinbase since 2021, according to his LinkedIn. His resume includes prominent financial institutions like Goldman Sachs, State Street, and JPMorgan. A representative from Coinbase revealed to Bloomberg, “We are well-prepared for ETF approval” and emphasized how their systems could manage higher trading volumes, liquidity boosts, and rising demand.
Existing as a trust company, Coinbase Custody prides itself on being the legal protector of assets, safeguarding their handling and distribution as per the owner’s wishes or as legally prescribed. Supervised by the New York Department of Financial Services, it undergoes audits by Deloitte & Touche.
As reported, several asset managers will entrust Coinbase Custody with their digital tokens if the U.S. Securities and Exchange Commission (SEC) approves spot Bitcoin ETFs. This development is concurrent with Barry Silbert, the Digital Currency Group (DCG) founder, stepping down from Grayscale’s board of directors. Silbert's resignation may enhance Grayscale's odds of transforming its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, as per crypto analysts.
Despite previous rejections by the SEC, recent changes like a court ruling and heavy-hitters backing the cause could result in a different outcome this time. Preparing for regulatory clearance, financial powerhouses like BlackRock, Franklin Templeton, and Grayscale Investments - all with plans to utilize Coinbase Custody for Bitcoin storage - await the decision.
According to Bloomberg ETF analyst Eric Balchunas, a favorable verdict is expected on January 9, followed by trading initiation around January 11. This possibility sparked a surge in Bitcoin prices, resulting in nearly a 160% increase in 2023.
Published At
12/29/2023 11:06:26 PM
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