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In an effort to expand its institutional services, Coinbase joins a pursuit in the field of the ever-exchanged exchange exchange fund (ETF).
As reported by Business Insider, the cryptocurrency exchange provider has been liaising with BlackRock, a US investment management company with approximately $ 6 trillion under its responsibility. Individuals close to the issue said that Coinbase sought guidance from BlackRock's blockchain working group.
While Coinbase spoke directly with the employees involved in the block block of BlackRock, the exchange took place after the experience of the organization in the legacy markets. The company has made a name with its attention to hedge funds and ETFs; iShares, its most popular ETF suite, for example, represented $ 1.11 trillion of assets managed by BlackRock in 2017.
It was this knowledge, the internal workings of the successful launch of an ETF, which was the bulk of Coinbase and BlackRock's conversation, say the sources of Business Insider. Even so, the sources also said that the working group did not give Coinbase any definitive direction on how it should go about getting an encrypted ETF off the ground.
Established in 2015, the think tank may seem strange In addition to BlackRock's consulting services as Larry Fink, the company's CEO, has called bitcoin a "money laundering index", claiming that its customers they have little or no interest in the surrounding cryptographic market. However, the working group brings out the talents from the various BlackRock departments to assess the disruptive potential of blockchain technology in financial services.
Another step in the scale
If Coinbase actually moves forward with an ETF deposit, the product would be enriched by the monolithic exchange offers of an institutional level, which include custody services and index funds for accredited investors.
But the ETF should first be approved. Furthermore, Coinbase is not the only runner in the race. Currently, high-level Commission officials on US Securities and Stock Exchanges are reviewing nine bitcoin ETFs that have been rejected on a staff level at the start of this summer.
These ETFs are part of a tough ongoing battle against regulators, who claim that markets are not mature enough or protected from manipulation to guarantee a market-traded product. This reasoning was used in the most recent ones being reviewed, as well as the latest Winklevosses attempt to secure a bitcoin ETF.
Potentially trying to distinguish itself from its competitors, Coinbase's ETF should track more cryptocurrencies, not just Bitcoin, another source close to the subject has stated to Business Insider. The product and its price monitoring would be, in whole or in part, originating from the Coinbase cryptocurrency index, which includes bitcoin, ether, litecoin, ethereum classic and bitcoin money.
An ETF of cryptocurrency, be it bitcoin or a product that tracks various currencies, could serve as a catalyst for charging new money into the cryptocurrency market. For both retail investors and institutional investors, the product is seen as a more accessible path for those who do not have the crypto community to acquire a stake in the market without having to navigate between cryptocurrencies and portfolios.
Coinbase has not replied to Bitcoin Request the Magazine for a comment.
