- BlackRock Amendment and Its Significance
- Reaction from Coinbase and Brian Armstrong
- Analysis and Impact on BTC Market
BlackRock's new amendment regarding their Bitcoin ETF has sparked active discussions among investors.
BlackRock Amendment and Its Significance
On September 16, BlackRock filed an amendment requiring Coinbase, the custodian for the ETF, to withdraw BTC to a public blockchain within 12 hours upon receiving an instruction. The amendment comes after investors' concerns about the processes of Bitcoin storage and withdrawal.
Reaction from Coinbase and Brian Armstrong
Coinbase CEO Brian Armstrong responded to investors' concerns regarding Bitcoin ETF custody, asserting that all ETF transactions are ultimately settled on-chain, despite the lack of public disclosure of all ETF addresses. Armstrong mentioned that the company undergoes annual audits by Deloitte.
Analysis and Impact on BTC Market
According to analysis conducted by Dune, ETFs have accumulated over $59.2 billion worth of BTC since their launch in January. However, Bloomberg senior analyst Eric Balchunas claims that the recent Bitcoin price slump is not due to ETFs but is caused by actions of native BTC holders.
BlackRock's amendment marks a significant step towards ensuring transparency and reliability of Bitcoin within ETFs. This event prompts further discussion on the processes and practices of cryptocurrency custody on institutional platforms.
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