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.

A 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.

If interest in tokens and altcoins wanes, Coinbase may be in a weak position.