Coinbase Explores a Crypto ETF with BlackRock

Coinbase is reportedly in talks with BlackRock about the creation of a cryptocurrency ETF.

After a growing number of failed attempts to establish a Bitcoin ETF by a lengthening list of firms, Coinbase has decided to throw its own hat into the ring. The San Francisco-based company is reportedly in talks with BlackRock, the world’s largest investment management firm, to establish a crypto ETF of its own.

According to a report by Ethereum World News, the Coinbase Crypto ETF would most likely track multiple cryptocurrencies rather than Bitcoin alone. It’s not yet clear whether Coinbase’s talks with BlackRock are ongoing, or if the conversation was a one-time event.

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BlackRock has indicated in the past that it is interested in forging connections with the cryptosphere. In July, BlackRock CEO Larry Fink announced that the company had formed a working group to investigate blockchain and cryptocurrency. However, he also said that BlackRock hadn’t received major demand from investors.

SEC Continues to Reject and Delay Crypto ETF Applications

Bitcoin ETFs have been top-of-mind for many in the crypto community over the past several months for several reasons. Widespread belief that a Bitcoin ETF would pump some life into the stagnant crypto markets certainly brought much attention to the subject. However, the SEC’s continual rejections of applications for Bitcoin ETFs has dampened hopes that an approval could be on the horizon in the relatively near future.

Most recently, the SEC delayed its decision on an application for a Bitcoin ETF by SolidX and Van Eck to September 30th. There is some speculation that the SolidX/Van Eck application could be the golden ticket, although the same application by the two companies was denied twice before.

Ilan Sterk, VP of trading at Hexa Group, wrote in a Medium post that the application has a lot going for it. Van Eck is an “award-winning, widely recognized investment and money manager” outside of the crypto sphere, writes Sterk. Additionally, “their digital assets are insured for up to $125 million (or more as needed) by various insurance companies.”

The SEC also announced that it would review several other rejected applications for Bitcoin ETFs.

However, if Van Eck and SolidX don’t manage an approval this time around, Coinbase could have an opportunity to get a leg up on its competition.

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