Coinbase Holds 81% of $140 Billion Institutional Crypto ETFs

Wall Street's growing interest in digital assets is evident in the significant increase of institutional crypto holdings through U.S.-based exchange-traded funds (ETFs). According to Coinbase CEO Brian Armstrong, these ETFs have accumulated a total of $140 billion in cryptocurrency. Coinbase holds 81 percent of this amount, highlighting the platform's expanding role in institutional finance.

Armstrong shared this information via X, emphasizing the scale of institutional adoption currently underway. Coinbase is the leading custodian of a large portion of ETF-based crypto investments this year, making it a pivotal player in this transition.

Nate Geraci, the president of ETF Store, noted that spot Bitcoin ETFs continue to experience robust inflows. Recently, an additional half a billion dollars was added to these funds, bringing the weekly aggregate to three hundred million dollars. Over the past two weeks, inflows into crypto ETFs have been steady, reaching a high of $4.6 billion.

In addition to the existing funds, more products are set to be launched. Armstrong revealed that over 50 new ETF applications have been submitted this year, all of which Coinbase is tracking. This indicates that institutional demand for crypto assets remains strong.

KraneShares has submitted one of the latest filings, aiming to launch the Coinbase 50 Index ETF. This proposed fund would track the top 50 digital assets based on market capitalization and liquidity. Geraci expects more filings of this nature as demand for diversified crypto exposure intensifies.

Armstrong also revealed that 8 of the 10 publicly listed largest companies holding Bitcoin on their balance sheets use Coinbase Prime to carry out custody and trade. The platform is adapted to the requirements of institutions, which implies compliance and safe access to the market.

Coinbase is also preparing to open new derivatives to U.S. investors. On July 21, it will introduce U.S. Perpetual-Style Futures contracts that follow spot prices and commercialize leverage in a regulated framework. It will become the first of two nano contracts that will be launched for Bitcoin at 0.01 BTC and Ether at 0.1 ETH.

With Wall Street firms heavily adopting ETFs and using Coinbase to secure their holdings, institutional crypto involvement is accelerating. The flow of inflows, new product releases, and fund registrations positions Coinbase as the key player in the second era of crypto finance.