Coinbase Loses Crypto Trading Revenue, But Gains Custody Fees from New Bitcoin ETFs
• Coinbase faces revenue decline as new low-fee Bitcoin ETFs become popular alternatives to buying crypto directly • However, Coinbase serves as custodian for 8 of the 11 new Bitcoin ETFs, earning fees • Custody fees could generate up to $30M annually for Coinbase currently • As Bitcoin price rises long-term, custody fee value will increase proportionately • Legitimization of Bitcoin via ETFs should attract more crypto activity over time, benefiting Coinbase