Bitcoin ETF: Coinbase’s Involvement May Stall Progress
Crypto exchange Coinbase could face potential delays in the approval of a spot Bitcoin ETF due to its involvement as a middleman between the crypto market and traditional equities market. The Securities and Exchange Commission (SEC) may hesitate to approve the ETF smoothly or may even reconsider its decision due to an ongoing dispute between Coinbase and the regulatory agency. This conflict, which began when the SEC sued Coinbase last June for allegedly acting as an unregistered exchange, broker-dealer, and clearinghouse, could become a significant obstacle in the entire Bitcoin ETF approval process. However, if the SEC does grant approval, Coinbase stands to benefit significantly from being a central component in the operation of securities, providing services such as custody, trading execution, market surveillance, and lending. Despite the uncertainties surrounding the approval, some analysts remain optimistic and even expect positive news in the near future. Reports suggest that there is a possibility of the ETF approval as early as this week, with the overall sentiment favoring approval before the January 20, 2024 deadline. If trading of the Bitcoin ETF commences in February or March 2024, it could potentially create an extended bullish wave in the market ahead of the Bitcoin Halving event scheduled for the second quarter of the year.