Spot Bitcoin ETF Approval Could Undercut Crypto Exchange Fees, Disrupting Coinbase's Business Model
• Spot Bitcoin ETFs could reduce fees and commissions for retail crypto traders compared to exchanges like Coinbase, benefiting investors.
• Analysts predict approval of a spot Bitcoin ETF could be a "bloodbath" for crypto exchanges that charge higher fees.
• A spot Bitcoin ETF would charge just 0.01% per trade compared to ~0.6% on some crypto exchanges.
• Lower ETF fees would increase competition, reducing the excessive ad spending some exchanges do today.
• Coinbase currently earns over 75% of revenue from transaction fees, which an ETF could disrupt.