• 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

a year 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.

chest

Other news

Goldman Sachs Invests Heavily in Solana Spot ETFs

chest

Goldman Sachs has made substantial investments in Solana Spot ETFs, totaling approximately $108 million, indicating a growing interest in altcoins and a shift towards broader crypto adoption by traditional financial institutions.

user avatarJacob Williams

Connecticut Man Accused of Defrauding Crypto Investors

chest

Elmin Redzepagic, a 24-year-old from Connecticut, is accused of defrauding crypto investors out of nearly a million dollars, which he allegedly gambled online. He faces multiple charges including wire fraud and money laundering.

user avatarZainab Kamara

Hackers Exploit Workforce Monitoring Tool for Ransomware Attacks

chest

Hackers exploit workforce monitoring tool Net Monitor for Employees Professional to deploy ransomware.

user avatarSon Min-ho

JPMorgan Sticks to $266,000 Bitcoin Target Despite Mining Challenges

chest

JPMorgan maintains its long-term Bitcoin price target of $266,000 despite mining challenges.

user avatarAyman Ben Youssef

CFTC Forms New Committee to Collaborate with Crypto Leaders

chest

The CFTC has formed a 35-member Innovation Advisory Committee to engage with the cryptocurrency industry and provide insights for regulatory development.

user avatarTando Nkube

Ethereum Faces Critical Price Levels Amid Market Volatility

chest

Ethereum is struggling to maintain crucial price levels as it retests significant support areas, with analysts warning of potential further declines.

user avatarKofi Adjeman

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.