According to reports, BlackRock is planning to apply for a Bitcoin ETF. The application reveals that the financial giant will partner with Coinbase exchange, utilizing their custody service for the ETF and leveraging Coinbase’s spot market tool for pricing.
BlackRock, founded in 1988 and headquartered in New York City, is a global investment management corporation known as one of the largest and most influential financial firms worldwide.
They manage assets for institutional clients and individual investors through various investment vehicles, including mutual funds, exchange-traded funds (ETFs), and other investment strategies.
The company’s primary focus is asset management, offering a wide range of investment products and services across various asset classes such as equities, fixed income, alternatives, and multi-asset solutions.
BlackRock serves a diverse client base, including governments, pension funds, foundations, endowments, and individuals.
Coinbase, headquartered in the US, is renowned as one of the most popular cryptocurrency exchanges globally. It holds the second position in terms of trading volume, following Binance.
Coinbase facilitates the trading of $145 billion worth of crypto every quarter and operates in over a hundred countries. Moreover, it manages assets valued at $130 billion.
BlackRock and crypto
Although traditional institutions have criticized cryptocurrency, BlackRock, an investment management firm, has displayed a keen interest in the field of cryptocurrencies and blockchain technology. While it does not offer direct cryptocurrency investments, BlackRock has made significant advancements in this area.
In 2018, Larry Fink, the CEO of BlackRock, recognized the potential of cryptocurrencies and blockchain. He mentioned that the company had formed a working group to explore their possibilities.
However, he also emphasized the importance of cryptocurrencies achieving greater stability and regulatory clarity before they could be widely regarded as mainstream investments.
In 2022, Coinbase partnered with a financial institution to streamline Bitcoin management and trading for institutional investors. The collaboration aimed to enable BlackRock customers on the Aladdin platform to access crypto trading, custody, prime brokerage, and reporting capabilities through the Coinbase Prime product.
Meanwhile, the SEC has not been supportive of applications for Spot Bitcoin ETF products in the past, only granting licenses for Futures Bitcoin ETFs. Will the BlackRock application potentially pave the way for Spot Bitcoin ETFs? The industry awaits!