Coinbase Stands to Benefit From New Bitcoin ETFs Despite Fee Competition
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Newly approved Bitcoin ETFs offer lower fees than Coinbase, potentially reducing its transaction revenue.
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However, Coinbase acts as the custodian for 8 of the 11 new Bitcoin ETFs, earning custody fees.
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As the ETFs grow in popularity, the total value of bitcoin held in custody will increase, raising Coinbase's fees.
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The ETF approval legitimizes bitcoin, likely attracting more investors and trading volume to Coinbase's platform.
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Long-term, Coinbase remains a key beneficiary of bitcoin's evolution and growing adoption.