Coinbase CEO Believes Crypto Industry Compares Better to Gold and Silver

Liputan6.com, Jakarta – Coinbase CEO Brian Armstrong shared his views on the crypto industry in the United States (US), and the expected impact of his exchange from bitcoin exchange-traded funds (ETFs) during his Q4 earnings call last week.

“We always said that ETFs would be win-win solution for Coinbase, and we are starting to see that happen on our platform,” said Brian Armstrong, quoted from News. bitcoinSaturday (24/2/2024).

“So in preparation for this launch, we won 8 of 11 spot bitcoin custody mandates from issuers, and as a result, Coinbase Custody now covers approximately 90 percent of the USD 36 billion in bitcoin ETF assets,” he said.

Armstrong said he has seen huge demand as bitcoin is now the second-largest commodity ETF in the US, surpassing silver.

“So across the industry, we have seen more than USD 4 billion in net inflows into spot bitcoin ETFs. Bitcoin ETFs are breaking records,” he explained.

Armstrong highlighted gold trading, which was first launched in November 2004. At that time, it took one year for the value of gold to reach USD 3 billion. But the ETF reached that value in just a few weeks.

“This is actually just the beginning. We are now starting to see some of these issuers apply for ethereum ETFs, for example. We were appointed as custodians in five of the eight ETF applications for ETH,” he said.

Armstrong also revealed Coinbase's main priority this year, namely driving revenue, especially growing its two largest revenue streams, trading fees and stablecoins.

“Our second priority is to continue to drive utility in crypto… Lastly, we will continue to push for regulatory clarity for the industry,” he added.

“What's even more important is that as every institution now starts holding crypto, the asset class will become a standard part of every diversified portfolio,” Armstrong added.

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