(VOR News) – In response to the mounting worries of investors regarding the on-chain settlement techniques utilised by Coinbase, BlackRock recently submitted an update to its application for a Bitcoin exchange-traded fund (ETF). This revision was made in reaction to the fact that the company was concerned about the situation.
BlackRock demanded that the custodian for the exchange-traded fund (ETF), Coinbase, ensure that Bitcoin withdrawals are processed within a period of twelve hours after receiving an order.
This requirement was included in a document that was submitted to the Securities and Exchange Commission (SEC) on September 16. A requirement of this nature was incorporated into the document.
In order to safeguard the interests of exchange-traded funds (ETFs) that are traded on the bitcoin market, investors have encouraged Coinbase to provide on-chain verification of Bitcoin purchases with the intention of protecting the interests of these funds.
Eight of the nine newly approved Ether (ETH) ETFs are held by Coinbase.
Additionally, Coinbase is the custodian of ten out of eleven of the most popular exchange-traded funds (ETFs) for Bitcoin in the United States.
Even though there have been considerable institutional inflows from exchange-traded funds (ETFs) that explicitly invest in Bitcoin, the price of Bitcoin has remained stable over the course of the previous three months. This is despite the fact that there have been significant inflows from cryptocurrency exchanges.
There have been some concerns raised about the possibility that Coinbase could acquire “paper BTC,” which are also commonly referred to as Bitcoin IOUs.
There is a possibility that the price of Bitcoin that is now in circulation will be artificially weakened as a result of this transaction. In spite of the fact that these exchange-traded funds (ETFs) have witnessed an increase in the number of institutional investments, the price of Bitcoin has remained stable over the course of the past few months.
This consistent pricing has contributed to the growing level of worry that is associated with this topic.
As far as the Chief Executive Officer of Coinbase, Brian Armstrong is concerned, the blockchain is the place where all transactions that involve exchange-traded funds (ETFs) are really processed. The fact that Coinbase does not make all ETF addresses accessible to the general public does not change the fact that this is the case.
In addition, Armstrong mentioned in a post that he made on X on September 14 that Deloitte is responsible for conducting annual audits of Coinbase, highlighting the fact that the company is a publicly traded one.
Armstrong’s tweet referenced Deloitte’s Coinbase evaluation.
“I question whether or not our institutional clients want people to dust off all of their addresses, and it is not our responsibility to share for them,” he continued in his remarks.
“It is not our responsibility to share for them.” This is the appearance of a significant amount of money flowing into Bitcoin from institutions. This is the image that is displayed.
From the time when Coinbase initially hinted at the possibility of introducing a new Wrapped Bitcoin (WBTC) cryptocurrency in August, investors started to become increasingly anxious about the possibility that Coinbase would introduce a new cryptocurrency that would be known as Coinbase BTC (CBTC).
An analyst for exchange-traded funds (ETFs), Eric Balchunas, who works for Bloomberg, is of the opinion that the ETFs themselves are not to blame for the recent drop in the price of Bitcoin. Even though there have been concerns raised about the procedures that Coinbase goes through.
Despite those worries, Coinbase announced this.
Exchange-traded funds (ETFs) that invest in Bitcoin have amassed considerable on-chain holdings, which have reached a total of more than $59 billion since the cryptocurrency was first introduced to the market earlier this year, according to statistics that were provided by Dune Analytics.
IBIT, which is managed by BlackRock, continues to be the most substantial of these exchange-traded funds (ETFs), with assets that total more than $22.5 billion. BlackRock currently manages IBIT. When taken together, these figures represent a market share that is higher than 38 percent.
SOURCE: TCT
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