Coinbase is celebrating after the SEC approved a bunch of new Ethereum ETFs. They’re proud to be the main custodian for most of these new funds, holding the crypto for 10 out of 11 Bitcoin ETFs and 8 out of 9 Ethereum ETFs. They say this will help the crypto market grow even more.
One Big Problem?
But not everyone is happy. Some experts are worried about putting all these eggs in one basket. Gabor Gurbacs, a crypto expert, is concerned that having Coinbase hold so much crypto for these ETFs is risky. He thinks it’s crazy that fund managers are okay with this.
“What if something goes wrong with Coinbase?” he asks. “We’ve seen that happen before in the crypto world. It’s not safe to put all your trust in one company.”
The Need for Diversification
Gurbacs isn’t saying Coinbase is bad, but he thinks the whole system is vulnerable if there’s only one big player. He thinks there needs to be more diversification, with other companies holding crypto for these ETFs.
Steven Dickens, another expert, agrees. He thinks regulators need to look into this and make sure the system is safe. He says that last week’s events (he doesn’t say what events) should be a warning about the risks of relying on just one company for technology.
So, while Coinbase is happy to be a big player in the crypto world, some experts are worried about the risks of having so much power concentrated in one place. They’re calling for more diversification and closer scrutiny from regulators.
