Bitcoin ETFs: A Game-Changer for Crypto Exchanges and Wall Street

Analysts warn that the approval of a spot Bitcoin ETF in the United States could have negative consequences for centralized cryptocurrency exchanges like Coinbase. The lower transaction fees offered by a spot Bitcoin ETF would attract retail buyers and sellers, potentially leaving crypto exchanges with outdated retail trade execution and commissions. The ETF would also create more price competition in the industry, diverting money back to investors from exchanges that rely heavily on transaction fees for revenue. Coinbase, for example, earned $2.4 billion in transaction fees in 2022, accounting for 77% of its total net revenue.