According to a source with knowledge of the situation, BlackRock is the largest asset manager in the world. It is about to apply to a Bitcoin exchange-traded fund (ETF). The firm reportedly uses Coinbase Custody, a division of well-known cryptocurrency exchange Coinbase to store the ETF’s assets securely while utilizing Coinbase’s spot market data for pricing.
With the anticipated move, BlackRock hopes to capitalize on institutional investors’ increased interest in cryptocurrencies. This development comes after the asset manager and Coinbase began working together last year to give institutional investors direct access to digital assets.
BlackRock has not yet responded to requests for comment regarding whether the planned ETF will track spot prices or make use of futures contracts.
The Securities and Exchange Commission (SEC), which oversees ETFs in the US, has so far turned down all requests for spot Bitcoin ETFs but approved several Bitcoin futures ETFs. Given BlackRock’s strong influence in the asset management sector, the outcome of its application will surely be of great interest to market participants.
BlackRock’s foray into the Bitcoin ETF market could open up new channels for institutional investors wanting exposure to cryptocurrencies. BlackRock is the largest asset manager in the world, with trillions of dollars under control. If approved, the Bitcoin ETF would offer a regulated investment instrument that would enable investors to track changes in the value of Bitcoin without really owning it.
The information regarding BlackRock’s Bitcoin ETF plans and collaboration with Coinbase comes from a knowledgeable source. Coinbase declined to comment on the matter.
The potential approval of BlackRock Bitcoin ETF would mark a significant milestone for the cryptocurrency market. It could lead to increased institutional adoption and wider acceptance of digital currencies.