This move comes amid increased U.S. securities regulator scrutiny, potentially boosting cryptocurrencies’ adoption and market stability.
BlackRock, the largest asset manager in the world, is on the verge of submitting an application for a Bitcoin exchange-traded fund (ETF), according to a recent report by CoinDesk. The information was disclosed by a knowledgeable individual cited in the report on Thursday. This development marks a significant step forward for the integration of cryptocurrencies into mainstream financial markets.
BlackRock is said to be partnering with Coinbase Custody, a trusted offline storage solution for digital assets to facilitate the bitcoin ETF. By utilizing Coinbase Custody, BlackRock aims to ensure the secure storage and management of the underlying bitcoin holdings that will support the ETF. Additionally, the asset manager will rely on the spot market data provided by Coinbase, one of the leading cryptocurrency exchanges, for accurate and reliable pricing of the bitcoin ETF.
This move comes at a time when the cryptocurrency industry is facing increased scrutiny from the U.S. securities regulator due to alleged violations of securities laws. In recent weeks, the regulator has initiated high-profile lawsuits against prominent exchanges such as Coinbase and Binance, which have sent shockwaves throughout the digital assets market.
The decision by BlackRock to explore the possibility of launching a bitcoin ETF highlights the growing acceptance and interest in cryptocurrencies among institutional investors. As the world’s largest asset manager, BlackRock’s involvement in the cryptocurrency space could potentially lend greater credibility and legitimacy to bitcoin as an investment asset.
This move could also open the doors for other traditional financial institutions to consider entering the cryptocurrency market, leading to increased adoption and potentially driving further growth and stability within the industry. The exact timeline for BlackRock’s filing and potential approval of the bitcoin ETF remains uncertain.