Coinbase currently holds approximately 4% of the total Bitcoin (BTC) in circulation, as reported by the blockchain analytics platform Glassnode. According to Glassnode, the leading US crypto exchange has custody of around 839,000 BTC.
The significant amount of Bitcoin held by Coinbase encompasses a large portion of overall exchange balances, as well as balances from US spot exchange-traded funds (ETF) through its custody service. The Coinbase Exchange and Coinbase Custody entities together hold an estimated 270,000 and 569,000 BTC respectively.
With Bitcoin trading at $65,085, it currently boasts a market capitalization of $1.285 trillion. Glassnode also notes that following the approval of spot Bitcoin ETFs in the US in January of this year, Coinbase saw a notable increase in Bitcoin deposits. However, a substantial portion of these deposits is linked to outflows from the Grayscale Bitcoin Trust (GBTC) address cluster, which has been a significant supply source throughout the year.
Upon the approval of spot Bitcoin ETFs, Coinbase was selected as the custody partner for eight of the exchange-traded products. Additionally, Coinbase serves as a surveillance-sharing partner for certain spot Bitcoin ETF issuers. In July 2023, investment manager Valkyrie entered into a surveillance-sharing agreement with Coinbase, involving the exchange of trading data, order book information, and other market data to monitor trading activities for fraud and market manipulation.
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