Coinbase, one of the leading cryptocurrency exchange platform in the world, is looking into launching their own Bitcoin ETF along with the help of BlackRock, according to Business Insider.
The exchange platform had a meeting with individuals working with the BlackRock’s blockchain group, according to reports. This is because the firm is considered to be an expert when it comes to launching an exchange-traded product.
BlackRock is one of the early firms to step into the ETF market and is well-known for its iShares division. The company set up its blockchain division in the year 2015 with the aim to identify various applications of blockchain technology in the financial services industry, as stated in the report.
It is unclear whether BlackRock has agreed to work alongside Coinbase. However, the CEO of BlackRock, Larry Fink has reportedly stated that the firm’s clients have absolutely no interest in the cryptocurrency market and referred to Bitcoin as an “index of money laundering”. Moreover, the Coinbase ETF will track several cryptocurrencies along with Bitcoin, reportedly.
Lobotomise4sale, a Redditor said:
“Very excited to see wall street get absolutely rekt on their “crypto” investments while bitcoin continues to eat their lunch.”
“What makes Coinbase think it can succeed here ? Something else is afoot.”
Meme_Pope, another Redditor said:
” These Bitcoin ETF’s are being rejected for problems that they see as endemic to Bitcoin. This one will be rejected for the same reasons. This fixation with ETF approval is bad for Bitcoin. It’s not happening any time soon and each rejection sets back the price and damages Bitcoin’s reputation.”
“I am very curious how this will turn out. Surely sec would kick coinbase out of the circle but with Vaneck it has sliiiiiiight potential for sec to turn and say hello by shaking head lol.”
Recently, Gemini, another leading cryptocurrency exchange platform had proposed for a rule change for Bitcoin ETF with the US Exchange and Securities Commission. However, the proposed ETF was rejected by the SEC twice. The main reason stated by the Commission was that the Bitcoin [BTC] market was prone to manipulation and that the approval of a proposed rule change required the exchange platform to enter into a surveillance sharing agreement in order to detect and prevent fraud and manipulation.
Moreover, the SEC rejected 9 Bitcoin ETFs last month stating the same reason. However, the commission reverted their statement the following day. They also postponed the most awaited Cboe VanEck Bitcoin ETF to the end of September 2018 stating that they required more time to look into the proposal made by the platform.
The news comes in the limelight when Bitcoin [BTC] plunged back to the bear’s grip. According to CoinMarketCap, at press time, the BTC is currently trading at $6,457.74 with a market cap of $111.41 billion. It has seen a significant dip of 7.06 % in the past 24 hours.
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