By
Bena Ilyas
April 23rd, 2024
Coinbase is considering an opportunity to join forces with the biggest asset manager in the world, BlackRock, with a view to develop a Bitcoin exchange-traded fund (ETF).
Bitcoin, as well as other major cryptocurrencies, is experiencing not the best period of its lifecycle, as the prices are low and strongly influenced by a number of external factors.
As CoinSpeaker has already reported, the announcement that Wall Street banking giant Goldman Sachs decided to postpone its plans to set up a cryptocurrency trading desk causing significant falls in prices. Just in a few hours after this information was revealed, Bitcoin lost almost 7%, while Ethereum lost over 15%.
This year, experts have been actively promoting the assumption that interest in cryptocurrencies from the side of institutional investors and major banks will greatly boost the industry. Bitcoin has been mainly supported by these ideas. Though it is still believed that even more institutional investors will join the industry, a great number of earlier announced plans still haven’t been realized.
However, there is some good news as well. Recently, it has become known that the world-famous cryptocurrency exchange Coinbase is considering an opportunity to join forces with the biggest asset manager in the world, BlackRock, with a view to develop a Bitcoin exchange-traded fund (ETF).
Experts believe that a single publicly-traded ETF may become a real life-saver for the slumping cryptocurrency market. Moreover, it is said that a Bitcoin ETF will facilitate the interaction with volatile crypto markets for retail investors.
For those familiar with the industry, it was not a surprise that Coinbase decided to set up a new project as the cryptocurrency company is well-known for being a pioneer in many aspects. It has been revealed that Coinbase started talks with BlackRock’s blockchain-focused division to analyze the company’s potential in launching exchange-traded investment products.
At the current moment, there is no precise information about development of this communication between two firms, nevertheless, optimists believe that the potential project will turn out to be a success.
Nevertheless, in general, the situation with Bitcoin ETFs remains rather unclear. The U.S. Security and Exchange Commission (SEC) has rejected a number of ETF proposals from different firms and now the community is looking forward to see whether the SEC will give an approval for a Bitcoin ETF proposal from money management firm VanEck and crypto startup SolidX.
So, while a lot of people are making guesses how the situation with Bitcoin ETFs will be solved, Trump administration has made its appointment to the SEC. It is already the 4th appointment to the Commission made by the President’s administration. Now, Elad Roisman a Republican from Maine, will join the regulatory watchdog.
Speaking in a hearing before the Senate Banking Committee in July, Roisman said that the SEC should review its rules, regulations, and guidelines in accordance with its mission as well as to pay more attention to such issues as data protection and cybersecurity.