Coinbase And BlackRock Together Working On A Cryptocurrency ETF

Even though the U.S. Securities watchdog - Securities and Exchange Commission (SEC) is rejecting several ETFs one after the other, the crypto-investment product still continues to drive excitement among investors and other industry players.

Citing sources familiar with the matter, Business Insider recently reported that Coinbase is working with asset management giant BlackRock on an exchange-traded product pegged to digital currency. Coinbase is said to have recently held talks with BlackRock’s blockchain working group and tap in their digital-expertise to launch exchange-traded products.

Coinbase is one of the most popular cryptocurrency exchanges and provides a range of crypto-related services like brokerage, trading, custody, asset management, and others. The company is also focusing on launching services aimed at accredited investors like crypto-index-fund launched earlier this year in March.

BlackRock started its blockchain working group in 2015 with an aim to identify potential applications of blockchain-based technologies in the financial sector.

Coinbase’s experiment with the crypto-ETF would make it yet another formidable player in the cryptocurrency space seeking a cryptocurrency ETF while joining the likes of CBOE and Winklevoss twins. CBOE is waiting for an SEC approval on its Bitcoin ETF. The decision by SEC is expected to arrive by the end of this month.

CBOE has been taking every care with regards to the SEC requirements. CBOE CEO, Chris Concannon, has expressed his wish to take the first-mover-advantage in launching a Bitcoin ETF in the market. But looking to the SEC’s reluctance, several analysts believe that Bitcoin ETFs won’t hit the market any time before 2019.

However, another report from TrustNode shows that the appointment of a Republican SEC Commissioner, Elad Roisman, has increased the chances of Bitcoin ETF arrival. In a latest senate hearing, Roisman said: “There’s a perception that the markets are rigged against the little guy and I think it’s important for the SEC to try to dispel that notion.”

Roisman’s views are quite in line with another SEC Commissioner Hester Peirce who recently questioned the agency’s decision over the rejection of Winklevoss Bitcoin ETF. Roisman’s partially positive stand over exchange-traded-funds (ETFs) suggests that he is optimistic about this investment product.

Wall Street giant Goldman Sachs has also said that it is working on cryptocurrency custody products to attract institutional players to the crypto space. Much recently, the company said that it will keep the plans of crypto trading desk on hold to focus on other priorities.