Coinbase Suspending Wrapped Bitcoin (wBTC) Trading as cbBTC Surges

Joshua Ramos
Coinbase
Source – New York Times

The largest cryptocurrency exchange in the United States, Coinbase, has announced that it is suspending the trading of wrapped Bitcoin (wBTC) as its own cbBTC offering continues to rise in value. In a post to X (formerly Twitter), the exchange announced that the suspension comes as part of a compliance review for the cryptocurrency.

The exchange notes that the asset will be suspended on December 19th, around 12pm ET. The move is a regular monitoring practice, as the firm looks to affirm all listed tokens “meet our listing standards.” Moreover, the rise of Coinbase’s own wrapped Bitcoin option has undoubtedly played a part in the decision.

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Coinbase Suspending wBTC as Exchanges Alternative Skyrockets

The success of Bitcoin in 2024 has seemingly taken the finance world by storm. With analysts projecting the asset to continue surging, it has already set a new all-time high Wednesday of $94,000. Moreover, the market is awaiting a potential increase to the $100,000 level in the coming months.

That has increased the interest in the leading cryptocurrency and also in wrapped Bitcoin options. Those digital assets are BTC that can be used across the Ethereum network. They have proven to be in demand, as Coinbase has announced the suspension of wrapped Bitcoin (wBTC) as its own cbBTC has enjoyed a meteoric rise.

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The exchange announced suspended trading on both Coinbase and Coinbase Prime. However, that will not have an effect on wBTC holders. Indeed, they will maintain full access to their holdings and be able to withdraw whenever they please. As the suspension approaches, the exchange has moved wrapped Bitcoin to a limit-only mode.

Coinbase’s cbBTC has been performing remarkably well since its launch. The token has recently surpassed a market cap of $1 billion. Moreover, it has boasted increasing adoption and trust within the sector. The recent market cap milestone could be set to ensure it is the leading wrapped Bitcoin option in the foreseeable future.