But we do not see that today, and we continue to see customers choose Coinbase for the breadth of our product offering, the security of our platform, and we think that, that will continue to persist for some time.
Brian Armstrong: Yes. Sorry, I just want to add. I mean, just a reminder, the entire industry, we’ve seen about $4 billion of net inflows since the Bitcoin ETFs launched. I think that’s really additive. The thing to remember here is we want crypto to really update the global financial system. So that means we need to get it integrated into more and more parts of the financial system. Every time that, that happens, we’re sitting here cheering for it. We want fees to come down and make it lower friction for people to get into crypto through all kinds of different vehicles. ETFs are a massive way to get more capital to come in. So far, we have not seen any cannibalization. As Alesia said, it’s been additive for Coinbase, and we’re seeing elevated engagement and net inflows on both retail and institutional Q1 to date.
So in my view, the ETFs are just a totally positive thing. And the more institutions that kind of get their feet wet with crypto, whether it’s through an ETF or any other way, the better because they’re eventually going to be using it in other ways, holding it on their balance sheet, paying their vendors, doing payroll. We want crypto to power more and more of global GDP. And we’ve got to get this happening through every opportunity we can. So ETFs are incredibly positive, I think, for our business.
Operator: Your next question comes from the line of Joseph Vafi with Canaccord Genuity. Your line is open.
Joseph Vafi: Hey guys. Good afternoon. Thanks for taking my question. Nice results. I’ve got a few, but maybe I’ll just focus my question on a follow-up to the previous one. I mean owning the underlying spot versus owning an ETF may seem the same for some investors, but I’m sure you thought a lot about owning the underlying spot versus an ETF and your differentiation in that. And so it would be great to hear what you see perhaps is the benefits of owning a Bitcoin outright versus owning an ETF? Thanks a lot.
Emilie Choi: I guess I’ll start and Alesia, maybe you can just pop in. One of the things we wanted to do in this ecosystem was to play the role where we have the kind of strongest competitive advantages. And because we’ve invested so much in the custody solution and the prime services, it felt like a really good area for us to play, and that’s why we garnered the majority share when we were working with these ETFs. Separately, we also want to make sure that we are able to invest in solutions where clients can invest in different crypto assets, and we have CBAM Coinbase Asset Management as something separate from that. But I think we’re trying to play the role that it’s best for us in each different part of the value chain. Alesia, anything to add on that?
Alesia Haas: One thing I’ll share is that the majority of customers on our platform do more than just own Bitcoin. Most customers own more than two crypto assets. If you look at our trading volume for Q4, 42% of our trading volume was in other crypto assets, not Bitcoin, not Ethereum, not USDT. So I think that what we believe is that the Bitcoin ETF is introducing new capital. Folks that were not coming to the spot market, folks that may want to invest to their 401(k), invest in a fund, and that’s where we’re seeing more adoption, more growth, more awareness of this asset class. But what we see is that when people start to learn about Bitcoin, they often then become excited about another asset, and they want to use that asset. They want a stake. They want to explore the crypto ecosystem in the decentralized applications. And so we’re delighted to see the expansion of users and investors in this asset class. We believe this is going to be just net additive to the space.
Anil Gupta: Sarah, we have time for one more question, please.
Operator: Thank you. Our final question will come from the line of Alex Markgraff with KBCM.
Alexander Markgraff: Hey everyone. Thanks for taking my questions. Maybe two, first one for Paul, if I could. Just on the challenge against the SEC’s decision not to engage in rule making. Just could you give us an overview of the process here and sort of the range of outcomes that you’re looking to?
Paul Grewal: I’m happy to do that. You’re referring, of course, to our petition that we filed in the Third Circuit Court of Appeals, challenging the decision of the SEC to reject or deny our request for formal rule making. That challenge is moving ahead. We were gratified to see the court set a briefing schedule. A briefing will begin next month and continue on into the spring on this question of whether the SEC act within its discretion in denying those that request for rulemaking or acted arbitrarily capriciously and denying our request. We’re confident that the Third Circuit will see it our way, and we look forward to the opportunity presenting our arguments at the appropriate time.
Anil Gupta: Great. Well, that’s it for today. Thank you all for joining us, and we look forward to speaking with you again next quarter.
Operator: This concludes today’s call. You may now disconnect.
