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.

Ekta Mourya FXStreet

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.

Author

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

Dash Price Forecast: DASH defies headwinds, paces toward $100

Dash extends its rally, reaching an intraday high of $96.85 despite the broader crypto market correcting. Retail interest in DASH explodes as futures Open Interest soars to $165 million.

XRP slides below 50-day EMA as selling pressure intensifies

Ripple is edging lower toward the pivotal $2.00 level at the time of writing on Friday, marking three consecutive days of declines. The sell-off extends across the crypto market, with Bitcoin falling toward $95,000 and Ethereum pressing down on support at $3,300.