From Nasdaq:

Investors now have new options for gaining Bitcoin exposure with the approval of 11 new spot Bitcoin exchange-traded funds (ETFs). This has raised concerns about potential revenue loss for Coinbase, but many ETFs offer lower fees, making them a more attractive option. Coinbase will act as the custodian for eight of the ETFs, potentially generating significant fees.

While the revenue from Bitcoin transactions may decline for Coinbase, it stands to benefit from its custodial role for the new ETFs, as well as potential fee increases as the value of Bitcoin appreciates. The approval of these ETFs is a significant milestone in Bitcoin’s evolution, attracting more activity and market adoption. Despite potential declines, Coinbase remains a key player in the crypto evolution.

Investors should consider the long-term implications of the approval of Bitcoin ETFs, as it represents a major step for the legitimacy and market adoption of the cryptocurrency. While Coinbase may see declines in Bitcoin transaction revenue, it is in a strong position as an industry leader and custodian for the new ETFs, and is likely to benefit from the overall growth and evolution of the crypto market.

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Read more: Is Coinbase in the Crosshairs? The Multimillion-Dollar Dilemma It Faces as Bitcoin ETFs Surge in Popularity.