What's Going On With Coinbase Global Stock Tuesday?

Coinbase Global Inc COIN is changing its leadership as it prepares to provide custody services for potential spot Bitcoin BTC/USD exchange-traded fund (ETF) applicants. 

Aaron Schnarch, the previous CEO of Coinbase Custody, has recently departed the company. Rick Schonberg, who joined Coinbase in 2021 and has prior experience with Goldman Sachs, State Street, and Tagomi, replaced Schnarch in August.

Coinbase Custody is popular among Bitcoin ETF applicants, including notable firms like BlackRock, Franklin Templeton, and Grayscale Investments, Bloomberg reports. 

These custody services are crucial for managing spot-bitcoin ETFs, as they are responsible for the secure storage of Bitcoin tokens.

Also Read: Coinbase Seals Approval in France, Sets Stage for Broader EU Crypto Operations

The company has made significant preparations for potential ETF approval. According to a Coinbase spokesperson, their systems are designed and tested to manage increased trading volume, liquidity, and overall demand.

Regulated by the New York Department of Financial Services and audited by Deloitte & Touche, Coinbase Custody operates as a trust company. The U.S. Securities and Exchange Commission (SEC) is approaching a January 10 deadline to decide on approving a spot Bitcoin ETF application by ARK Investment Management LLC and 21Shares, among others.

Coinbase's stock has seen substantial growth, benefitting from the 2023 rebound in the crypto market. 

Despite a recent 6% drop to $175.29 in New York, the company's shares have surged almost 400% in the last one year.

Price Action: COIN shares traded higher by 1.83% at $177.19 premarket on the last check Tuesday.

Also Read: Who Would Buy Bitcoin ETF If Approved? Analyst Survey Reveals

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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