Coinbase’s latest institutional report on global crypto investment vehicles could easily be seen as a not so subtle nudge to U.S. regulators.
Could you please sign off on a crypto ETF, already, Mr. Gensler? Also, appreciate the boost, Canada.
“We believe Canada’s approval of bitcoin ETFs will nudge along regulators elsewhere as part of the initiatives to bring crypto into the financial landscape fully,” the report says. “It will impose market surveillance, custody, and auditing requirements on the industry, offering a safer route into the space for retail and institutional investors.”
The statements were part of a report from Coinbase Institutional, which noted the number of global crypto funds has ballooned to more than 800, quadrupling since 2018, with a collective AUM over $36 billion.
The report focuses heavily on the potential of crypto ETFs and heavily hints that U.S. approval is key to Coinbase’s plans for the industry moving forward. Grayscale Investments, which recently played up its plans to turn its Grayscale Bitcoin Trust ($GTBC) into an ETF, uses Coinbase as a custodian for its bitcoin holdings.
The report makes the case for the conversion. You can download the full report from Coinbase HERE.
“Although the GBTC has proven a key route for institutions to gain regulated exposure to crypto, its closed-ended structure means that it either trades at a premium or discount to its net asset value,” the report states. “The advent of the Canadian ETFs already appears to be providing competition for this exposure, as investors can now buy into a bitcoin ETF that always trades at its net asset value.”
Grayscale Bitcoin Trust had long traded at a premium to bitcoin, but in recent months has been trading at a deep discount.
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