Coinbase has joined the list of entities looking to launch an ETF (Exchange-Traded Fund). The crypto exchange has engaged BlackRock for assistance in the initiative going by statements made to the Business Insider by anonymous sources. BlackRock, which is the custodian of assets worth over $6 trillion, has been in the forefront pioneering other ETFs in the crypto industry and also boasts of a Blockchain working group.
Coinbase, earlier in the year, made the announcement that it will be introducing a Cryptocurrency index fund especially for those investors who are accredited. It has joined entities like Gemini, VanEck and Bitwise Asset Management in the bid to be the first to introduce a crypto ETF. The SEC (Securities and Exchange Commission) has so far denied proposals for Bitcoin ETF made by nine different applicants.
A source which claims to be familiar with the situation at Coinbase has said that the intended ETF would enable the crypto exchange to keep an eye on the performance of other Cryptocurrencies.
Not Interested In Giving Out Crypto Funds
BlackRock has said that it is not interested in offering crypto funds. The CEO, Larry Fink, has stated that the firm’s clients have not registered whether they have any sort of interest in dealing with Cryptocurrencies.
BlackRock announced the launch of its own Blockchain working group roughly three years ago, in 2015. The main aim of establishing a Blockchain group, according to an unnamed source, was to research the Blockchain technology and determine how it could be applied in the financial services industry. The working group is largely made out of employees from other subsidiaries of the company.
It has not yet been determined how extensive the talk between BlackRock and Coinbase was, however, the source claimed that thus far no recommendations have been made to Coinbase by the financial giant’s representatives.
Custody Products For Crypto Currencies
Multiple financial services providing institutions have been involved in coming up with custody products for the crypto market among these being Goldman Sachs, JP Morgan, Fidelity, and ICE.
Goldman Sachs is in the process of developing a product which will enable financial institutions to maintain crypto assets as well as monitor any changes in the prices of Cryptocurrencies on behalf of its clientele. JP Morgan and Fidelity have also been said to be working on similar products.
The New York Stock Exchange operator ICE (InterContinental Exchange) has the launch of a digital currency trading platform. The trading platform called Bakkt was launched last month, August.
An Uncertain ETF future
The future of Bitcoin ETF is still largely uncertain going by the recent decisions made by the SEC concerning them. Many people, however, are having a more positive outlook since the appointment of Elad Roisman. Roisman has been known to have a more objective approach to Cryptocurrency regulation.
Bill Barhydt, the founder, and CEO of Abra, a Crypto start-up providing Bitcoin payment solutions, has said that it is possible for a Bitcoin ETF to be approved provided that SEC accepts an applicant’s caliber.