Coinbase Dominates Bitcoin ETF Custody, But Competition Growing
• Coinbase is currently the dominant custody services provider for proposed bitcoin ETFs, working with 5 of the 12 applications so far.
• Competitor BitGo has been left out so far, but its CEO says the company is in talks with several ETF issuers about providing custody.
• Some see Coinbase's heavy concentration as a custody provider as problematic, but analysts say other exchanges lack regulatory clarity to participate.
• VanEck recently chose Gemini as its custody partner, breaking Coinbase's monopoly.
• 5 of the proposed 12 bitcoin ETFs still have no named custody partner, leaving open the possibility for further competition.