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Coinbase Achieves Record $7.7 Billion Bitcoin OTC Trading Volume Amidst ETF Surge

Crypto Giant Coinbase Hits Historic $7.7 Billion BTC OTC Trading Volume in Wake of Spot ETF Approvals

Jan 11, 2024
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As Spot Bitcoin ETFs gain approval, Coinbase sets new records, signaling a transformative moment for the crypto industry.

Coinbase has reported an impressive $7.7 billion in over-the-counter (OTC) trading volume for Bitcoin (BTC) today. This achievement is the second highest in the exchange’s history and marks a significant turning point for the cryptocurrency sector, especially in the wake of the recent approval of spot Bitcoin ETFs (exchange-traded funds).

The surge in transaction volume is largely attributed to the recent green light given to spot Bitcoin ETFs. This development also pushed Coinbase’s total daily trading volume for BTC to a new high of $52 billion, a record not seen since March 21, 2023.

The sanctioning of multiple Bitcoin ETFs has ignited a wave of enthusiasm and hope within the cryptocurrency community. Brian Armstrong, the CEO of Coinbase, expressed his thoughts on this landmark decision by the Securities and Exchange Commission (SEC), underlining its importance for both Coinbase and the wider crypto industry. “This is a monumental step for the crypto industry and for Coinbase,” Armstrong stated in a recent interview. He emphasized that the decision represents a long-awaited recognition from the government and specifically the SEC, affirming that cryptocurrencies are a permanent and legitimate asset class.

Armstrong also highlighted the potential influx of new capital into Bitcoin as a result of these ETF approvals. “This ETF is really about unlocking new pools of capital that weren’t previously available. [Institutions] didn’t have a way to get exposure to crypto. Now, they can come in and get exposure to Bitcoin. That’s great! New pools of capital come in. That’s kind of the first step in people’s journey around crypto,” he said.

While Armstrong did not comment on the recent spike in Coinbase’s transaction volumes, the significant increase suggests that institutions may already be strategically positioning themselves in anticipation of future developments.

This was evident within 30 minutes of the commencement of spot Bitcoin ETFs trading, when a total of $1.2 billion in trading volume was recorded. The growing demand drove the price of BTC to $48,555, the highest level since late December 2021.

However, this new milestone is not just about the numbers. It signifies the steady and undeniable integration of cryptocurrencies into the global financial system, laying the groundwork for a more inclusive and diversified financial future.

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