Coinbase CEO Brian Armstrong revealed during a recent earnings call that the company has been named as the custodian in five of the eight Ethereum ETF applications. This announcement comes as Coinbase reported a 45.2% increase in net revenue, reaching $905 million in the fourth quarter. The company’s net income also turned positive with $273 million, a significant improvement from the $2 million loss in the previous quarter.
The surge in revenue was largely driven by transactional activity, with consumer crypto trading bringing in $493 million, nearly double the amount from the third quarter. Institutional transaction revenue also doubled to $36.7 million. Additionally, Coinbase processed over $29 billion in consumer trading volume, marking a 164% rise from the previous quarter.
Subscriptions and services were also significant contributors to revenues, generating $375.4 million. Stablecoin and blockchain rewards played a major role in this, accounting for $171.6 million and $95.1 million, respectively.
Armstrong emphasized that ETFs have had a positive impact on the industry, leading to increased engagement and net inflows across both retail and institutional sectors. He also highlighted the growing adoption of cryptocurrencies by major financial organizations, stating that crypto will become a standard part of every diversified portfolio. Armstrong believes that the financial system is officially embracing crypto, and Coinbase aims to be the most trusted partner in this space.
The CEO’s positive outlook extends to Bitcoin ETFs as well. Armstrong noted that these ETFs are breaking records, surpassing the growth rate of gold ETFs during their early stages. He described the rapid growth of Bitcoin ETFs as “an incredible start.”
In terms of price action, Bitcoin was trading at $52,354 at the time of writing, while Coinbase shares experienced a significant increase of approximately 150% over a one-year period. After the earnings report, the stock rose by 8.41% after-hours, reaching $179.45.
Overall, Coinbase’s strong financial performance and its involvement in Ethereum ETFs indicate the company’s continued growth and influence in the cryptocurrency market. With the increasing adoption of cryptocurrencies by major institutions, Coinbase is well-positioned to capitalize on this trend and solidify its position as a trusted partner in the industry.
