The American exchange Coinbase intends to create its own traded crypto fund (ETF) with the support of the company BlackRock, which has assets at $6 trillion. This is written by Business Insider with reference to the sources familiar with the situation.
Coinbase is known for a wide range of cryptocurrency solutions affecting asset management, venture capital, trade, storage and brokerage services. Now the company intends to launch a new exchange product tied to cryptocurrencies to open access for individual investors to the developing market.
In recent weeks, Coinbase has been negotiating with members of the BlackRock workgroup on the blockchain, thus referring to its experience in launching traded products, the source said. BlackRock is one of the pioneers of the ETF market.
BlackRock’s blockchain working group was formed in 2015, consists of multidirectional specialists and develops scenarios for the use of technology in financial services, the source said.
Whether there was discussion of the issue between Coinbase and BlackRock a one-time or companies are in the mode of continuous dialogue is not known. Representatives of the BlackRock working group did not give concrete recommendations, the source added.
According to it, BlackRock itself is not interested in launching the crypto-fund. CEO of the company Larry Fink previously stated that his clients also did not show interest in this topic, and he calls bitcoin “money laundering index”.
If Coinbase is really going to launch its own crypto-ETF, it joins a number of companies that have the same plans, including Gemini, Bitwise Asset Management and VanEck.
In March, Coinbase presented a cryptocurrency index fund, focused on accredited investors. It is expected that ETF Coinbase will also be tied to a basket of cryptocurrency, and not just one bitcoin.
The Coinbase initiative marks the last attempt to attract traditional companies from Wall Street to the cryptocurrency market. In the past, most such attempts, in particular in the field of ETF, turned out to be a failure.
On Wednesday, it became known that investment bank Goldman Sachs does not plan to open a department on trading cryptocurrencies in the near future, despite the fact that it is not going to abandon other opportunities in this area, including developing a custodian solution and providing its customers access to futures to bitcoin.