• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

BlackRock addresses investors' concerns with amendment to Bitcoin ETF application

user avatar

by Giorgi Kostiuk

9 months ago


  1. BlackRock's Application Amendment
  2. Investors' Reactions and Coinbase
  3. Key Metrics and Expert Opinions

  4. BlackRock recently filed an amendment to its Bitcoin ETF application in response to growing concerns among investors regarding Coinbase's onchain settlement processes.

    BlackRock's Application Amendment

    According to a filing with the Securities and Exchange Commission (SEC) on September 16, BlackRock now requires Coinbase, the custodian for the ETF, to process Bitcoin withdrawals within 12 hours of receiving an instruction.

    Investors' Reactions and Coinbase

    Investors have asked Coinbase to produce onchain verification of Bitcoin purchases on behalf of spot ETFs. Coinbase is the custodian for 10 out of 11 top Bitcoin ETFs and eight of nine newly approved Ether (ETH) ETFs in the United States. Despite the recent institutional inflows through Bitcoin ETFs, BTC prices have remained flat for the previous three months. There are fears that Coinbase might acquire 'paper BTC,' or Bitcoin IOUs, which could artificially suppress the actual Bitcoin price. These concerns have been fueled by Bitcoin's stagnating price over the last few months, despite the influx of institutional investments through these ETFs.

    Key Metrics and Expert Opinions

    Brian Armstrong, the CEO of Coinbase, said that all ETF-related transactions are indeed settled on-chain, even though Coinbase does not publicly disclose all ETF addresses. On September 14, Armstrong also wrote in an X post that Coinbase is audited annually by Deloitte, emphasizing its status as a public company. ETF analyst Eric Balchunas from Bloomberg argued that the ETFs themselves are not to blame for Bitcoin's recent price slump. Since their introduction earlier this year, Bitcoin ETFs have amassed significant on-chain holdings, totaling over $59 billion. BlackRock's IBIT remains the largest of these ETFs, holding over $22.5 billion in assets, which accounts for more than 38% of the market share.

    I doubt our institutional clients want people dusting all their addresses, and it’s not our place to share for them. This is what it looks like if you want a bunch of institutional money to flow into Bitcoin.Brian Armstrong, CEO of Coinbase

    Despite the concerns surrounding Coinbase's practices, experts argue that Bitcoin ETFs are not the reason behind the recent price stagnation of Bitcoin. Meanwhile, ETFs continue to amass significant on-chain holdings, strengthening their market presence.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Regulatory Challenges for Robinhood's Expansion into Tokenization

chest

Robinhood's stock tokenization strategy is being examined by Lithuania's central bank for compliance with financial regulations.

user avatarGiorgi Kostiuk

Unusual Price Fluctuations of XRP: How 2017 Affected Markets

chest

An overview of unexpected price fluctuations of XRP considering historical events and future prospects analysis.

user avatarGiorgi Kostiuk

Altcoin Purge: More than 1,400 Tokens Are No Longer Active

chest

A recent purge has led to over 1,400 altcoins being marked inactive on the cryptocurrency market, indicating signs of market health.

user avatarGiorgi Kostiuk

Little Pepe: Memecoin with Potential 50x Growth

chest

Little Pepe is gaining rapid popularity in 2025 thanks to its unique strategy and meme blockchain.

user avatarGiorgi Kostiuk

Ruvi AI: Blockchain and AI Innovations in Cryptocurrency

chest

Ruvi AI is rapidly gaining popularity, offering a unique blend of blockchain and artificial intelligence to tackle real-world issues.

user avatarGiorgi Kostiuk

Institutions Prefer Ethereum: Growing Interest and Assets

chest

Exploring why Ethereum is attracting institutional investors, including new ETFs and major deals.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.