Zinger Key Points
- Transparency in custodial arrangements is crucial for investor clarity in the cryptocurrency market, says Coinbase's Martin.
- Coinbase prepares for a potential influx of crypto investors in 2024, emphasizing counterparty reliability and online security.
- Get the Real Story Behind Every Major Earnings Report
Crypto exchange Coinbase Inc. COIN, which acts as the primary custodian for 10 of the 13 currently available spot Bitcoin BTC/USD exchange-traded funds (ETFs), highlighted Tuesday its robust security measures.
What Happened: Coinbase brings "less exposure to custodial risks" for investors compared to directly owning a cryptocurrency, the firm's chief security officer Philip Martin said in an interview with CNBC.
Martin explained the extensive vetting process Coinbase underwent with ETF issuers, reflecting a commitment to security since the firm launched in 2012.
Blockchain addresses don't necessarily prove ownership or off-chain conditions, he added.
Also Read: Will Charles Schwab Eyeing Bitcoin ETF Be A Game-Changer For Retail Investors?
Regarding potential security risks with increased crypto interest due to ETFs, Martin highlighted the extensive due diligence done by ETF issuers.
Why It Matters: ETFs will open doors for previously hesitant investors, Martin says. They will promote "more stable risk management in market infrastructure," he added.
Anticipating a potential influx of new crypto investors, Martin stressed the importance of choosing reputable counterparties with a good track record.
He reiterated the importance of online security practices like two-factor authentication for first-time investors.
Image: Coinbase
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