Coinbase Leads as Top Custodian for New Ethereum ETFs

Coinbase is acting as the custodian for eight out of nine newly approved Ethereum (ETH) exchange-traded funds (ETFs), as reported by CEO Brian Armstrong.

The new ETFs, which launched in the US on Tuesday, include offerings from major firms like BlackRock, Fidelity, 21Shares, Invesco, Franklin Templeton, VanEck, Bitwise, and two from Grayscale.

What are we expecting today for the Ethereum ETFs?

We expect them to begin trading tomorrow. That means we should see a bunch of filings on SEC site today that say the ETFs’ prospectuses have gone “effective”. Likely after or around market close. Here are the race entrants: pic.twitter.com/AkBxEjBRvv

— James Seyffart (@JSeyff) July 22, 2024

Fidelity has opted to use its own custody services rather than Coinbase, while VanEck has named Gemini as its primary custodian but will also use Coinbase Custody as an additional option.

Armstrong hailed the approval of these ETFs as a major advancement for regulatory clarity, asserting that the SEC’s decision affirms Ethereum is not classified as a security.

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On their first trading day, Ethereum ETFs saw around $165 million in outflows, largely driven by $484.1 million exiting Grayscale’s ETF, which had transitioned from the Grayscale Ethereum Trust.

These figures do not account for data from BlackRock and Invesco.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.