Coinbase Global, the renowned cryptocurrency exchange, has recently undergone a leadership change within its custody division, according to a report by Bloomberg. This shift includes the departure of Aaron Schnarch, the former CEO of Coinbase Custody, and his replacement by Rick Schonberg in August.
Coinbase’s decision to replace Aaron Schnarch with Rick Schonberg aligns with its efforts to offer services to applicants of spot Bitcoin exchange-traded funds (ETFs). This move comes as Coinbase emerges as the preferred choice for custodial services among Bitcoin ETF applicants, including industry giants like BlackRock, Franklin Templeton, and Grayscale Investments.
Rick Schonberg, who joined Coinbase in 2021, brings valuable experience to his new role. He has previously worked at reputable financial institutions such as Goldman Sachs, State Street, and Tagomi. Schonberg’s expertise in the field will play a crucial role in Coinbase’s endeavor to provide secure custodial services for potential managers of spot Bitcoin ETFs.
Coinbase is well-prepared for the potential approval of Bitcoin ETFs. The company has designed and tested its systems to handle increased trading volume, liquidity, and overall demand. As a trust company, Coinbase Custody falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche. These measures ensure that Coinbase meets the necessary regulatory requirements for offering custodial services to Bitcoin ETF applicants.
The race for the first ETF directly investing in Bitcoin is entering a critical phase, with the US Securities and Exchange Commission (SEC) facing a deadline of January 10 to decide whether to approve a spot Bitcoin ETF application submitted by ARK Investment Management and 21Shares, among others. The outcome of this decision holds significant implications for the adoption and mainstream acceptance of cryptocurrencies.
The potential approval of spot Bitcoin ETFs by the SEC will have far-reaching implications for the crypto market. Bitcoin, the largest cryptocurrency, has been consolidating above $40,000 in recent weeks, exhibiting sideways movement since the beginning of December. However, it has achieved a notable gain of over 11% in the last 30 days. The approval of these index funds by the largest asset managers in the world could have an impact on Bitcoin’s price and the overall crypto market as a whole.
The changes in leadership at Coinbase Custody, marked by the departure of Aaron Schnarch and the appointment of Rick Schonberg, signal the company’s strategic response to the growing demand for custodial services from Bitcoin ETF applicants. As Coinbase prepares for potential regulatory approval, the industry eagerly awaits the SEC’s decision and its implications for the future of cryptocurrencies. Investors are advised to conduct their own research and exercise caution when making investment decisions.