Trading Manager at Coinbase Leaves After Just 6 Months
The trading manager at major US-based startup Coinbase, Hunter Merghart, has left his position after only 6 months of working for the company. Merghart decided to leave Coinbase and is currently looking for another position. Coinbase hasn’t commented publicly on the situation as of yet.
Merghart’s resignation comes after the manager who had employed him, a man named Adam White, resigned as well from Coinbase early in October in order to take the COO position at Bakkt, a new cryptocurrency platform that is being run by ICE, the parent company of the NYSE.
White, was the 5th employee at Coinbase and during his time working there he served in the capacities of VP and GM. White had employed Merghart to work at the outfit at the beginning of May this year. Merghart was previously at Barclays bank in the United Kingdom, where he had been directing the United States equity trading desk starting in 2015.
It seems Merghart is resigning from the firm because he is frustrated that he didn’t have access to sufficient resources vital in performing his role and wasn't receiving clarification about the business going forward, as per two individuals who knew his case. Coinbase made a recent statement detailing the closure of an index fund that was looking for investors from institutions only a few months following it going online.
Focusing on Institutional Trade
The resignation comes with the fact that Coinbase has secured around $300 million in funds in a round of Series E, and it has plans to use half of those funds to start to focus more on the institutional aspect of the startup. The funding round pushed Coinbase to declaring its $8 billion mark, making among the most valuable entities in the cryptosphere.
The COO and head of Coinbase said that the increasing custody, as well as institutional activities aim to provide a huge share of the company's profits. Right now, profits are based 100% on transactions.
Coinbase has covered its bases when it comes to institutional trading. Ex-CEO of Instinet, Jonathan Kellner, was hired by Coinbase to be director of the group for institutional trading. Also, a former advisor at Charles Schwab, named Chris Dodds, was added to Coinbase’ board of directors and ex-JP Morgan exec, Oputa Ezediaro, has joined the group as well.
Furthermore, ICE is preparing to release BTC futures on the Bakkt exchange come this December and additionally Fidelity Investments will build a cryptocurrency platform.