It's going the opposite direction. Those offering real world and tradfi assets are moving into the crypto space. That is going to eat Coinbase's lunch.
replyThe worst part of using something like Coinbase is having to do yet another bank transfer, waiting for it to clear, doing KYC/AML yet again, etc etc for what most people is just to buy one or two single asset (BTC or maybe ETH probably). Instead just click buy in Robinhood or Schwab along with everything else.
The major prop shops and market makers are all over crypto, for sure. But they're only there because these markets are poorly regulated and there's a lot of retail juice to squeeze.
replyA friend of mine works for one of the major crypto firms and they're starting to deploy algorithmic trading bots on their own exchange.
The spreads on these markets can be diabolical
That makes sense, thank you for explaining. TradFi already offer access (direct or ETFs) to major cryptos who have demonstrated some utility like BTC, ETH, XRP, SOL and a few others.
replyIf interest in tokens and altcoins wanes, Coinbase may be in a weak position.