Coinbase calls spot bitcoin ETF approval 'watershed moment'

Cryptocurrency exchange Coinbase, which has long been at loggerheads with the Securities and Exchange Commission, cheered the regulator's decision to approve a host of spot bitcoin ETFs on Wednesday.

"The SEC’s approval of 11 spot bitcoin ETFs, eight of which are partnered with Coinbase, is a watershed moment for the expansion of the cryptoeconomy," the company said in a blog post . "Spot bitcoin ETFs introduced by the world’s largest asset managers will unlock diversified pools of new investors to spur long-term growth and product innovation."

Spot bitcoin ETFs using Coinbase as custodian. Image: The Block.

'Grateful to Grayscale'

After months of speculation and with a deadline looming, the SEC approved 11 spot bitcoin ETFs on Wednesday. Trading on the newly approved financial instruments that allow investors to wager on the price of bitcoin without having to own it directly is expected to start tomorrow.

Traditional financial institutions like BlackRock and Grayscale are among the companies that are offering the exchange traded funds.

Coinbase and the SEC have had their fair share of public battles, but in this case the cryptocurrency exchange appears pleased with the regulator's decision.

"We should all be grateful to Grayscale for pushing back against the SEC’s arbitrary and capricious behavior, and clearing the way to get these spot BTC +0.62% ETFs over the finish line," Coinbase's Chief Legal Officer Paul Grewal posted to X following the regulator's decision.