Coinbase, the largest listed cryptocurrency exchange, could face negative impacts on its trading volume, margin, and trading commissions due to the rise of bitcoin exchange-traded funds (ETFs). If investors turn to low-cost ETFs that track the spot price of bitcoin, it may divert potential Coinbase customers to equity brokers. The ease and lower fees associated with ETFs could attract new investors, potentially pressuring Coinbase s margins.
The recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) has sent ripples of excitement through the global crypto community.
Bitcoin did not move much but clutched near the $42,800 mark, whereas Ethereum was comfortable above $2,550 levels amid the jittered sentiment for the digital token market.