Coinbase Comments on Bitcoin ETFs Approval

America’s largest cryptocurrency exchange, Coinbase, has tagged the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S. a “watershed moment,” which would lead to the expansion of the digital asset economy.

In a blog post, the trading platform stated that the new products would unlock diversified pools of fresh investors to propel long-term growth and product innovation.

A Watershed Moment

On January 10, the United States Securities and Exchange Commission (SEC) ended a years-long wait for spot Bitcoin ETFs by approving the first wave of ETFs for trade on national securities exchanges like the New York Stock Exchange (NYSE), Nasdaq, and the Chicago Board Options Exchange (CBOE).

The list comprises ETFs from over a dozen asset management firms, including BlackRock, Ark Invest/21Shares, Grayscale, WisdomTree, VanEck, Bitwise, Valkyrie, Invesco/Galaxy, Fidelity, Hashdex, and Franklin Templeton.

Coinbase believes the approvals would provide investors with access to spot crypto in a familiar and regulated product and pave the way for a new wave of adoption powered by the world’s largest asset managers.

“Today’s approval is the latest step in a global shift toward digital assets that is helping drive updates to the financial system itself. Crypto is here to stay, and spot bitcoin ETFs will further expand crypto adoption,” the crypto exchange stated.

The Biggest Endorsement of Crypto

A majority of the pool of capital from U.S. households has lacked a direct path to spot crypto investment for many years despite demand by investors. Citing data from the Digital Assets Council of Financial Professionals, Coinbase explained that roughly half of U.S. financial advisors own bitcoin (BTC), but only 12% recommend the digital asset to their clients.

The main reason for this issue has been the lack of an ETF. However, the situation has changed with the approval of the spot Bitcoin funds.

Coinbase noted that the approved products are asset managers’ “biggest endorsement” of crypto so far, adding that “they see a variety of ways that crypto can benefit their clients, from serving as a safe haven when turmoil hits traditional financial markets to providing portfolio diversification, to countering the effects of expansionary fiscal and monetary policy.”

While the impact of the SEC’s decision on markets and the financial system may take time to materialize, the approval date will be seen as a pivotal moment in the evolution of crypto in a few years.

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Source: https://cryptopotato.com/coinbase-comments-on-bitcoin-etfs-approval/