Coinbase CEO Brian Armstrong addressed recent concerns regarding Bitcoin exchange-traded funds (ETFs) during a public event, emphatically rejecting allegations that these ETFs represent “paper Bitcoin.” He affirmed that Bitcoin ETFs are fully backed by actual Bitcoin. Armstrong highlighted that Coinbase holds over 80% of the custody market for U.S. Bitcoin ETFs, describing this as a competitive advantage and a testament to the company’s strong position. While acknowledging risks associated with custody concentration, he noted that large funds typically diversify their custody services as they grow, which he considers a healthy practice.
Armstrong also detailed Coinbase’s robust custody infrastructure, including cold storage systems, continuous audits, and advanced security measures, supported by patented technology and expert cryptographers to prevent attacks. Chief Financial Officer Alicia Hous explained that ETF assets are fully available on the blockchain, allowing clients to verify their holdings independently, though wallet addresses are kept private for security and privacy reasons.
Furthermore, Armstrong and Hous commented on ongoing discussions about U.S. cryptocurrency regulations and expressed Coinbase’s stance on the proposed Clarity Act. Armstrong stated that the company opposes the current draft of the bill, deeming it impractical, but continues to advocate for clearer legal frameworks. Coinbase officials emphasized the need for balanced regulation to ensure transparency and stability in the crypto industry. Armstrong expressed hope that relevant legislation will be enacted soon, fostering sustainable growth for the sector.
Source: bitcoinmagazine
