The approval of a bitcoin ETF is considered the Holy Grail in the crypto universe. It would certainly usher in fresh capital and rising prices. However, up to date, all applications submitted to the U.S. SEC have been rejected or postponed. According to a new report, Coinbase, the largest U.S.-based cryptocurrency exchange, is considering launching its own bitcoin ETF.
The rise of a Bitcoin ETF is a hotly debated topic whose hype has yet to fade, even to this day. Many industry experts see it as a “strong lever” that would serve as a catalyst to bolster crypto market prices for the long term. Institutional investors would gain an easy way to deliver crypto-fueled financial resources to the market.
Coinbase: Launch of Bitcoin ETF?
Currently, Coinbase offers various services for retail investors, but also for institutions with large amounts of capital. Coinbase Custody Service was especially developed for institutional investors.
According to a recent Business Insider report, Coinbase has held a series of talks with executives at BlackRock, the world’s largest asset manager, to gain valuable insights and discuss possible ways to deliver a bitcoin ETF through its subsidiary, iShares.
Allegedly, BlackRock declined to provide any concrete recommendations, and it remains unclear if the two companies share common goals or whether this was only early talks.
Anonymous sources leaked that BlackRock was exploring the cryptomarket some time ago. However, a short time later, BlackRock chief Larry Fink strongly denied it. He said that his clients were not the least bit interested in investing in cryptocurrencies. Nonetheless, the company put together a blockchain research group.
When will the SEC finally approve a Bitcoin ETF?
In recent weeks, the SEC has rejected a number of bitcoin ETFs. Rejection included ProShares, GraniteShares, Direxion, and the application submitted by the Winklevoss twins, Cameron and Tyler. The decision to review the VanEck / SolidX application is still pending. A a decision could be reached as soon as Sept. 30, though further delays are expected.
Regardless of how concretely Coinbase’s ambitions have already progressed, this development shows that many events occur behind the scenes. Meanwhile, individual investors are none the wiser and can only assume and draw connections based on price developments.