Crypto markets have gotten a boost this year after the US Securities and Exchange Commission approved an exchange-traded fund to track the spot price of Bitcoin and Ether, ending an almost decade-long tussle.

“We are increasingly optimistic that the next administration, whether Democrat or Republican, will be constructive on crypto. The rhetoric has shifted,” CEO Brian Armstrong said on post-earnings conference call.

“Since we went public, we have reiterated the need for regulatory clarity.”

The SEC and Coinbase have locked horns over their divergent views on whether crypto tokens classify as securities and should be regulated similarly. The company has accused the top US markets regulator of overreach, while the SEC has alleged the largest US crypto exchange is flouting its rules.

Approvals of spot bitcoin ETFs marked the entry of traditional financial heavyweights such as BlackRock and Fidelity into digital assets, giving the sector greater credibility.

In the aftermath, the total market capitalisation of the sector has swelled to roughly US$2.36 trillion, according to CoinGecko, powered by gains in both Bitcoin and Ether, the second-biggest crypto token.

Coinbase’s total transaction revenue surged 139% to US$780.9 million in the second quarter.

Revenue from Coinbase’s subscription and services unit, which houses businesses outside of trading, jumped 79% to US$599 million in the quarter.

Quarterly custodial fee revenue climbed to US$34.5 million, benefiting from inflows tied to spot bitcoin ETFs.

The company’s total revenue doubled to US$1.45 billion, beating analysts’ estimates of US$1.4 billion, according to LSEG data.

It posted a profit of 14 cents per share in the quarter, compared with a loss of 42 cents a year earlier.