Coinbase Explores a Crypto ETF with BlackRock

After a growing number of failed attempts to establish a Bitcoin ETF by a lengthening list of firms, Coinbase has decided to throw its own hat into the ring. The San Francisco-based company is reportedly in talks with BlackRock, the world’s largest investment management firm, to establish a crypto ETF of its own.

According to a report by Ethereum World News, the Coinbase Crypto ETF would most likely track multiple Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term rather than Bitcoin alone. It’s not yet clear whether Coinbase’s talks with BlackRock are ongoing, or if the conversation was a one-time event.

BlackRock has indicated in the past that it is interested in forging connections with the cryptosphere. In July, BlackRock CEO Larry Fink announced that the company had formed a working group to investigate Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term and cryptocurrency. However, he also said that BlackRock hadn’t received major demand from investors.

SEC Continues to Reject and Delay Crypto ETF Applications

Bitcoin ETFs have been top-of-mind for many in the crypto community over the past several months for several reasons. Widespread belief that a Bitcoin ETF would pump some life into the stagnant crypto markets certainly brought much attention to the subject. However, the SEC’s continual rejections of applications for Bitcoin ETFs has dampened hopes that an approval could be on the horizon in the relatively near future.

The SEC has denied the Winklevoss CBOE bitcoin ETF application. Concerns on surveillance remain https://t.co/0p3uyrQ0XO pic.twitter.com/CRwDOZYKZo

— Anna Irrera (@annairrera) July 26, 2018

Most recently, the SEC delayed its decision on an application for a Bitcoin ETF by SolidX and Van Eck to September 30th. There is some speculation that the SolidX/Van Eck application could be the golden ticket, although the same application by the two companies was denied twice before.

Ilan Sterk, VP of trading at Hexa Group, wrote in a Medium post that the application has a lot going for it. Van Eck is an “award-winning, widely recognized investment and money manager” outside of the crypto sphere, writes Sterk. Additionally, “their digital assets are insured for up to $125 million (or more as needed) by various insurance companies.”

The SEC also announced that it would review several other rejected applications for Bitcoin ETFs.

However, if Van Eck and SolidX don’t manage an approval this time around, Coinbase could have an opportunity to get a leg up on its competition.