★Over 80% of Bitcoin ETF assets hit Coinbase custody choke point with $74B at risk
"A huge chunk of Bitcoin ETF assets are held by Coinbase, making the entire market reliant on one company for custody. This concentration creates a single point of failure, meaning any issues at Coinbase could significantly impact the stability and perception of regulated Bitcoin investments."
The Big Coin Report Take
Over 80% of the assets backing newly launched Bitcoin ETFs are held in custody by Coinbase, amounting to roughly $74 billion. This significant concentration means the vast majority of regulated Bitcoin exposure now relies on a single entity for secure storage. The situation raises concerns about systemic risk, as any issue with Coinbase's operations could severely impact the entire Bitcoin ETF market. Investors should monitor ongoing regulatory scrutiny and any diversification efforts by ETF issuers to mitigate this custody concentration.
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