America’s largest cryptocurrency exchange Coinbase has been chosen by WisdomTree, a New York asset manager, as the custodian and surveillance-sharing partner for their Bitcoin exchange-traded fund (ETF) application submitted to the US Securities and Exchange Commission. Coinbase will be responsible for storing the digital coins backing the fund’s shares. Other traditional finance firms have selected Coinbase because of its trustworthiness and legitimacy, having gone public two years ago on the Nasdaq. The SEC has until January 15 to approve or deny WisdomTree’s Bitcoin Trust, however, the eight-day window to approve a long-list of spot Bitcoin ETF applications closed today with two applications being put on hold.
This is positive news for Coinbase as it continues to be chosen as a trusted partner by traditional finance firms for their Bitcoin ETF applications. It is also positive news for the cryptocurrency market in general, as this could bring more legitimacy to the industry and further pave the way for a Bitcoin ETF to be approved.
You can read more about this topic here: Decrypt: WisdomTree Adds Coinbase as Custodian for Bitcoin ETF