Originally published on: July 29, 2024
In a significant move to support global spot Bitcoin exchange-traded funds (ETF), cryptocurrency exchange powerhouse Coinbase has entered a partnership with Australia’s DigitalX as the custody provider for its newly launched DigitalX Bitcoin ETF (BTXX).
#### Coinbase Prime: Providing Institutional-Grade Custody and Trading Services for BTXX
Coinbase will offer custody and advanced trading execution services for BTXX through its renowned institutional-grade exchange platform, Coinbase Prime. This platform ensures sophisticated storage solutions for institutions and individuals managing substantial crypto holdings.
Launched on July 12, the DigitalX Bitcoin ETF aims to replicate Bitcoin’s performance by maintaining long-term holdings of BTC. DigitalX secured approval to list the ETF on the Australian Securities Exchange (ASX) on July 9.
#### Coinbase’s Clout in the Spot Bitcoin ETF Scene
As a key player in facilitating global spot Bitcoin ETF infrastructure, Coinbase has cemented itself as a partner and custody provider for numerous spot Bitcoin and Ether ETFs. Notably, industry giants such as the Grayscale Bitcoin Trust ETF and BlackRock’s iShares Bitcoin Trust rely on Coinbase for Bitcoin custody solutions.
Coinbase boasts over 12 years of experience in safeguarding digital assets at scale, positioning itself as a trusted bridge to the crypto economy. Despite concerns over potential threats of hacking or state intervention, Coinbase’s robust custody solutions and longevity in the industry instill confidence among investors.
#### Impact on the Australian Market and Industry Dynamics
The approval and launch of various Bitcoin ETFs have reshaped the Australian market landscape. The ASX saw the introduction of its first spot BTC ETF, the VanEck Bitcoin ETF (VBTC), on June 20, 2024. This development allows Australians to partake in BTC investment opportunities through exposure to VanEck’s US equivalent.
Unlike some competitors, VanEck opted to collaborate with Gemini, the crypto exchange founded by the Winklevoss twins, as a custodian, diverging from the trend of relying on Coinbase for custody services.
Following its listing on the ASX, the DigitalX Bitcoin ETF marked the second spot Bitcoin ETF on the exchange, following VanEck’s debut in June, signaling a growing acceptance and integration of cryptocurrency ETFs in traditional financial markets.
#### Conclusion
With Coinbase’s ongoing support and expertise in custody services, the DigitalX Bitcoin ETF and other spot Bitcoin ETFs are well-positioned to thrive in the evolving global financial landscape. This strategic partnership underscores the growing legitimacy and accessibility of digital assets for institutional and individual investors alike, paving the way for continued innovation in the cryptocurrency space.
