Coinbase: Bitcoin ETF Approval 'Only a Matter of Time'
The cryptocurrency giant Coinbase has sounded a bullish note on the prospect of the Securities and Exchange Commission approving a Bitcoin ETF—a long-awaited development that is expected to increase overall demand for Bitcoin and likely provide a price pop.
According to a forthcoming report for institutional investors seen by Decrypt, Coinbase believes there are signs that U.S. policy towards crypto is "softening" and that an ETF approval is likely inevitable.
"We believe that given clear public interest and favorable market developments, it is only a matter of time before the U.S. SEC approves a Bitcoin ETF," stated the report.
The report did not provide a precise timeframe for when Coinbase believes an ETF might be approved, but cited ETF-issuers' predictions that this will occur this year or in 2022.
While the crypto industry has eagerly awaited a Bitcoin ETF—which would let investors gain access to Bitcoin via shares on traditional exchanges—the SEC has stymied those hopes since 2017, when it first rejected an ETF on the grounds the underlying Bitcoin market could be subject to manipulation.
In its report, Coinbase acknowledges that "at least a dozen applications to list a Bitcoin ETF have been knocked back" by the SEC but adds that the company believes a much larger market for Bitcoin will allay the agency's concerns over manipulation.
If the SEC approves Bitcoin ETFs, it will benefit the companies applying for them, which include investment giants like Fidelity. But an approval will also benefit Coinbase, which stands to make money from providing services to those companies.
"These ETF issuers will leverage our custodial, staking, and trade-execution capabilities to provide the most competitive products to their clients," said the report, which did not include details about how much revenue Coinbase might earn from such services.
The report did not discuss the prospects for an Ethereum ETF, which is also the subject of several applications before the SEC.Source