Coinbase Considering Bitcoin ETF

One of the most high profile cryptocurrency exchanges and wallet service providers in the world, Coinbase is considering launching its own Bitcoin ETF (exchange traded fund). To this end, the company has reportedly linked up with the world’s biggest asset manager, Blackrock Inc.

Partnership with Wall Street

According to sources familiar with this matter, Coinbase has reportedly held discussions with Blackrock’s working group that is focused on Blockchain. It seems that Coinbase’s executives met with Blackrock’s representatives in the hope that they could gain some valuable insights as well as expertise about the ETF space – of which Blackrock is a master.

Blackrock is a giant in legacy markets, with a huge focus on ETFs and Hedge Funds. In fact, iShares, the company’s top suite of ETFs, accounted for $1.41 trillion of Blackrock’s $6 trillion in assets under management last year.

At this stage, however, it is not confirmed whether these “discussions” were fruitful, and if they were going to lead to an actual deal at the end of the day. Chances are that these discussion may not really lead to anything if Blackrock’s chairman and CEO Larry Fink’s comments are anything to go by.

Recently, Fink told Bloomberg Surveillance during an interview that Blackrock’s clients were not looking at investing in cryptos. In fact, in a later statement, Fink even called Bitcoin a money-laundering index.

Increasing Competition for Bitcoin ETFs

Bitcoin ETFs are a big thing in the cryptocurrency community at the moment. A handful of investment firms, including the cryptocurrency exchange Gemini, owned by the Winklevoss twins, have already submitted applications to the US Securities and Exchange Commission.

However, so far, the SEC rejected the Gemini’s proposal for a Bitcoin ETF. Additionally, after an initial rejection of another 9 Bitcoin ETF proposals put up by 3 different crypto firms, the SEC is now reviewing them. These three firms are Direxion, GraniteShares and ProShares.

VanEck and SolidX have also submitted an application for another BTC ETF, on which the SEC is to give a decision on or before September 30. The regulator was originally expected to give a decision in August, however, postponed giving one until the end of this month.

The uncertainty around whether the SEC will actually approve the launch of so many or any Bitcoin related ETFs has caused some amount of volatility. Experts believe that if the Bitcoin ETFs are approved, then the cryptocurrency markets could see a massive rally.