Coinbase is exploring the possibility of launching a Bitcoin-oriented exchange-traded fund and is consulting with BlackRock for this purpose.
In June, Coinbase launched an index fund for accredited investors from the United States, but, according to the publication, now wants to expand the offer to retail investors. It is also possible that one bitcoin will not be limited to Coinbase and will make an investment basket linked to several cryptocurrencies.
As part of this process, the Californian company intends to take advantage of the experience of members of the working group on the cryptocurrency market, which BlackRock – one of the world’s largest investment firms – formed last summer. Was there any discussion of the launch of Bitcoin-ETF with a single or Coinbase and BlackRock in a continuous dialogue mode?
The source of Business Insider also added that representatives of the BlackRock workgroup had not yet given Coinbase specific recommendations. In addition, according to him, BlackRock itself is not interested in launching bitcoin-ETF.
Earlier, CEO Larry Fink also said that BlackRock customers this new asset class is “not interesting”.
In the event that Coinbase really pondered the launch of Bitcoin-ETF, a San Francisco company could join the ranks of Gemini, Bitwise Asset Management, VanEck and several other firms that are also trying to launch similar products. All their previous attempts, however, met resistance from the Securities and Exchange Commission (SEC).
The latest such case was the August decision of the SEC to refuse to launch nine Bitcoin-oriented stock investment funds. Soon, however, it became known that the Commission would reconsider this decision.
The day before the head of Abra, Bill Barhydt, said that the SEC had not yet approved the bitcoin-ETF because the initiators of the launch of these funds “do not meet the expectations” of the agency, but suggested that this could happen in 2019.