- Coinbase’s head of custody, Aaron Schnarch, has departed and been replaced by Rick Schonberg as Coinbase prepares to potentially serve as custodian for spot bitcoin ETFs.
- Coinbase is a popular choice as custodian among ETF applicants, so providing custodian services for a spot bitcoin ETF would be a major milestone for crypto.
- The leadership change comes as multiple firms have applied for spot bitcoin ETFs, which differ from existing bitcoin futures ETFs, and custody is an important consideration for SEC approval.
Coinbase Global Inc.’s head of custody, Aaron Schnarch, has departed the company. This comes as Coinbase prepares to provide custodian services for spot bitcoin exchange-traded fund (ETF) applicants.
Schnarch’s Replacement
Schnarch has been replaced by Rick Schonberg, who joined Coinbase in 2021. Schonberg previously worked at Goldman Sachs, State Street, and Tagomi.
Coinbase a Popular Custodian Choice
Coinbase is the most common choice for custodian among ETF applicants. Providing custodian services for a spot bitcoin ETF would be a major development for the crypto industry.
Context on the Spot Bitcoin ETF Race
A spot bitcoin ETF would track the price of bitcoin directly. This differs from existing bitcoin futures ETFs. Several firms have applied to launch spot bitcoin ETFs, but no applications have yet been approved.
Custodians like Coinbase play a key role in the ETF process by holding the underlying assets. The SEC has emphasized the importance of custody arrangements in considering bitcoin ETF applications.
Coinbase’s custody shuffle comes amid ongoing speculation over if and when a spot bitcoin ETF may finally be approved in the US. The leadership change could impact Coinbase’s positioning around providing custodian services for these eagerly anticipated products.
