BlackRock joins hand with Coinbase Custody for Bitcoin ETF application, undeterred by SEC vs Coinbase lawsuit


  • BlackRock is close to filing an application for a Bitcoin ETF according to a CoinDesk report. 
  • The asset manager will use Coinbase Custody and the exchange’s spot market data for pricing, according to a source close to the matter.
  • The global investment manager is undeterred by the SEC’s lawsuit against Coinbase and continues its working partnership with Coinbase. 

BlackRock, the world’s largest investment manager, is working on an application for a Bitcoin Exchange Traded Fund (ETF). A source close to the matter informed CoinDesk that the asset manager plans on using Coinbase Custody for the ETF.

While Coinbase is currently embroiled in a legal battle with the US Securities and Exchange Commission (SEC), BlackRock is undeterred by the lawsuit. 

Also read: Tether crumbles under selling pressure as CTO assures USDT holders

BlackRock prepares Bitcoin ETF application

BlackRock has $8.59 trillion in assets under management as of December 2022. The global investment firm is making strides towards filing a Bitcoin ETF application in the atmosphere of regulatory uncertainty surrounding cryptocurrencies.

According to a CoinDesk report, a source familiar with the matter said that BlackRock will use Coinbase Custody, a crypto custodian service and the exchange’s spot market data for pricing. 

The Coinbase Custody service currently supports 12 crypto assets, including Ethereum, Tether, Dogecoin and Cardano.

While Coinbase tackles the SEC lawsuit, the asset manager is set to utilize the exchange’s services for its product offering. BlackRock first started working with Coinbase in 2022, making crypto available to institutional investors.

It remains unclear whether the ETF application is for a spot or futures product. Moreover, till date, the US financial regulator has rejected every single application for a spot Bitcoin ETF. Several Bitcoin futures ETFs, ProShares, Valkyrie, VanEck, and Bitwise were approved, among others. 

The FXStreet team approached Coinbase and BlackRock for comments. Watch this space for updates.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP