BlackRock To Expand More Bitcoin ETF With New Filing Application

Key Points:

• BlackRock, the world’s largest asset manager, is on the verge of launching a Bitcoin ETF.
• With the ETF, the massive asset management will use Coinbase Custody and the crypto exchange’s spot market data.
• It was unclear if the ETF would be spot or future.

According to a source familiar with the situation told to CoinDesk, BlackRock, the world’s largest asset manager, is close to launching an application for a Bitcoin ETF (exchange-traded fund).

According to the source, BlackRock will use Coinbase Custody for the ETF and the crypto exchange’s spot market data for pricing. It was unclear if the ETF would be spot or future.

Coinbase collaborated with BlackRock in August to give its customers direct access to cryptocurrency, beginning with Bitcoin. Customers of BlackRock’s institutional investment management platform Aladdin who also sign up for Coinbase Prime, will have access to crypto trading, custody, prime brokerage, and reporting features.

Coinbase Prime is an institutional trading system that offers over 300 digital assets for trading, custody, prime financing, staking, data, and reporting. The service is designed for hedge funds, asset allocators, financial institutions, and corporate treasuries. Coinbase Prime is used by over 13,000 customers.

BlackRock already introduced an ETF to provide European consumers exposure to the blockchain company, and rumors suggest a Metaverse-focused ETF is on the way.

The iShares Blockchain Technologies UCITS ETF, which debuted in September, is a blockchain ETF. BlackRock said that 75% of its assets are blockchain firms like as miners and exchanges, with the other 25% being companies that support the blockchain ecosystem. The fund has 35 worldwide corporations out of a total of 50 holdings, including fiat currency and derivatives, but does not invest directly in cryptocurrencies.

So far, the Securities and Exchange Commission (SEC), which regulates ETFs in the United States, has denied every application for a spot Bitcoin ETF, however, it has permitted the trading of multiple Bitcoin futures ETFs.

Coinbase has recently encountered a spate of regulatory issues. The Securities and Exchange Commission of the United States is attempting to clamp down on the country’s biggest exchange.

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Harold

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