3 reasons why Ethereum’s turnover exceeds Bitcoin’s, according to Coinbase’s CFO
In a recent conversation with CNBC Squawk Box presenter Andrew Sorkin, the chief financial officer of Coinbase (NASDAQ:), the leading US exchange, cited three reasons why she believes that Coinbase’s turnover is outpacing that of the first. quarter of 2021.
In addition, she assesses that institutional investors in Coinbase will be more active than retail investors.
Three reasons why Ethereum surpasses BTC in turnover
Coinbase CFO Alesia Haas believes the growth in versus trading volume comes down to three reasons:
- The growth of the non-fungible token industry in Ethereum;
- The increasing volume of blocked in the Ethereum 2.0 deposit contract;
- The gradual transition of the network to the Consensus Proof of Interest (PoS) algorithm from a proof-of-work (PoW) algorithm.
Coinbase will likely shift to more institutional money in the future.
When asked whether Coinbase will have more inflows from institutional or retail investors, he said it will likely be institutional.
According to Haas, Coinbase is currently “building deep roots” with its institutional clients – which include Tesla (NASDAQ:) and Elon Musk’s SpaceX – seeking escrow services and continuing to invest in cryptocurrencies.
The CFO stated that institutions recognize that Coinbase took care of security with large investments. Plus, there’s the fact that Coinbase has never been hacked and has never lost its investors’ cryptocurrencies since the exchange began trading.
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