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

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.