- Of the 11 Spot BTC ETFs authorized, Coinbase is the custodian for eight of them.
- Kraken is aiming to replicate this strategy and secure a substantial portion of the market.
The Spot Ethereum ETF frenzy has begun, after the Spot Bitcoin ETF mania. Amidst the excitement around the Ether ETF, it has come to light that Kraken, the second-largest cryptocurrency exchange in the US, is considering joining the crypto ETF custodian race, similar to Coinbase.
Of the eleven Spot Bitcoin ETFs authorized on January 10th, Coinbase is the custodian for eight of them. According to a revelation by Fox Journalist Eleanor Terrett, Kraken is aiming to replicate this strategy and secure a substantial portion of the crypto ETF market.
Market Share Battle
Additionally, Kraken’s official twitter account replied to her post with a purple heart, suggesting that they backed up her claims. After the much-anticipated potential May approval, Kraken may attempt to assume the custodian position for Spot Ethereum ETFs, now that the Bitcoin ETF period has over.
As a result, Kraken and Coinbase would be squarely in the middle of the crypto ETF custody battle. Additionally, Coinbase will not abandon its pursuit of the Spot Ether ETF just because it has become the custodian for the majority of Bitcoin ETFs.
The fact that Coinbase has teamed up with prominent crypto ETF participants like BlackRock, Grayscale, and Franklin Templeton—all of which have sought clearance for the Spot Ethereum ETF—means that Kraken will face stiff competition.
Franklin Templeton has applied for a Spot Ethereum ETF with the SEC. The decision by Franklin Templeton to join other financial giants like Ark 21Shares and BlackRock shows that conventional finance is starting to embrace cryptocurrencies.
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