Coinbase Custody Reorganizes Leadership as Bitcoin ETF Verdict Looms
Amid the hot race for the Spot Bitcoin ETF, Rick Schonberg is going to replace Aaron Schnarch as Coinbase Custody’s chief executive officer.
The game of musical chairs coming before the verdict concerning whether a spot Bitcoin ETF will be permitted on Wall Street is happening. Allegedly, Coinbase is changing its custody business’s leadership. Reports reveal that Aaron Schnarch lately stepped down as Coinbase Custody’s chief executive officer.
Expert Trader to Lead Coinbase Custody
Schnarch has led the firm since June 2022. However, Rick Schonberg, a senior fintech executive at Coinbase since 2021, has replaced her. His LinkedIn profile indicates he has been the head of foundations and trading, custody, and trading. Examples of his ex-employers include State Street, Goldman Sachs, and JPMorgan Chase.
A Coinbase representative said they have extensively prepared for exchange-traded fund (ETF) acceptance. They added that the firm’s systems ‘have been developed and tested to address extra trading volume, added liquidity, and general rises in demand on the systems.’
Coinbase Custody is a trust firm, meaning it is a legal assets guardian. This ensures their distribution and management based on the owners’ wishes or legal requirements. The firm identifies with the oversight provided by the New York Department of Financial Services (NYDFS) and Deloitte & Touche audit.
Coinbase Custody is going to protect digital tokens on asset managers’ behalf in case the U.S. Securities and Exchange Commission (SEC) approves spot Bitcoin exchange-traded funds.
DCG Executives Exit Grayscale’s Board
This news comes some days following the resignation of Barry Silbert, Digital Currency Group founder, from Grayscale’s board of directors. Some crypto market commentators claim that Silbert’s exit could boost Grayscale’s probability of effectively changing its Grayscale Bitcoin Trust into a spot Bitcoin exchange-traded fund.
The Securities and Exchange Commission has earlier rejected numerous applications. However, the applicant’s weight, as well as a fresh court verdict, might result in a different outcome.
Firms awaiting regulatory consent include financial behemoths such as Franklin Templeton, BlackRock, and Grayscale Investments. All these intend to utilize Coinbase Custody for Bitcoin storage.
Eric Balchunas, an ETF analyst, anticipates an optimistic verdict on January 9 and trading to start around January 11. The expectation is increasing Bitcoin’s prices, with the cryptocurrency attaining almost 160% this year.
