Coinbase appoints new head of custody amid Bitcoin ETF preparations

Coinbase has changed its head of custody, potentially as a strategic decision for handling services related to spot Bitcoin ETFs.

The departure of Aaron Schnarch, the former Chief Executive Officer of Coinbase Custody, marks a pivotal shift in the company’s leadership. Schnarch’s position has been filled by Rick Schonberg, who joined Coinbase in 2021 and brings experience from previous stints at Goldman Sachs, State Street, and Tagomi.

Breaking: After @Grayscale shuffles their team before the ETF approvals, @Coinbase follows suit with Rick Schonberg replacing Aaron Schnarch at Coinbase Custody.

Aaron Schnarch, chief executive officer of Coinbase Custody, left in recent weeks, a spokesperson confirmed. He was… pic.twitter.com/rUajrSXK6f

— MartyParty (@martypartymusic) December 29, 2023

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Coinbase’s custody division is recognized as a preferred choice for Bitcoin ETF applicants. This includes major financial players such as BlackRock, Franklin Templeton, and Grayscale Investments. The importance of custody services is heightened in the context of Bitcoin ETFs, where the security and management of tokens are critical for investor confidence and operational efficiency.

This leadership transition comes at a crucial time for the cryptocurrency industry. The race to secure the first U.S. regulatory approval for an ETF investing directly in Bitcoin has intensified. The SEC is expected to rule by Jan. 10 on an application for a spot Bitcoin ETF submitted by ARK Investment Management, headed by Cathie Wood, and 21Shares. The outcome of this decision may set a precedent for similar applications in the pipeline.

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