Coinbase Selected as Trusted Custodian for Eight Ethereum ETFs by CEO Brian Armstrong
Coinbase has been identified as the custodian for eight out of the nine recently approved Ethereum exchange-traded funds (ETFs), as per Brian Armstrong, the CEO of the exchange.
On Tuesday, nine Ethereum ETFs commenced trading in the United States, including offerings from BlackRock, Fidelity, 21Shares, Invesco, Franklin Templeton, VanEck, and Bitwise, along with two distinct funds from Grayscale.
Among the newly approved ETFs, only Fidelity has opted not to utilize Coinbase as a custodian, opting to self-custody instead, as indicated in a visual shared by James Seyffart, an ETF research analyst at Bloomberg Intelligence.
VanEck has designated Gemini as its primary custodian for the ETF but mentioned in its filing with the Securities and Exchange Commission (SEC) that it would also employ Coinbase Custody as an additional custodian.
Armstrong expressed that these launches signify a significant advancement in regulatory clarity. He emphasized, “ETH is not a security! We’ve been saying it for years and today the SEC finally made it official.”
Seyffart highlighted on Tuesday evening that Ethereum ETFs experienced approximately $165 million in outflows on their debut day, largely due to $484.1 million exiting Grayscale’s ETF product, which transitioned from the preexisting Grayscale Ethereum Trust.
However, the figures from BlackRock and Invesco were not included in the ETF analyst’s calculations.
The developments in the ETF landscape for Ethereum signify a pivotal moment in the cryptocurrency market, reflecting growing institutional interest and regulatory progress in the sector.
