- Coinbase’s deal with Blackrock might rekindle a dormant Bitcoin ETF plan
- Coinbase was said to he discussing a Bitcoin ETF with Blackrock back in 2018
- Will their recently announced deal lead to a revision of this plan?
A Bitcoin ETF is considered the holy grail for institutional adoption, and there have been many attempts over the years to secure one, all of which have been unsuccessful. However, Blackrock’s recent partnership with Coinbase may rekindle an idea that was initially sparked in 2018 but that many thought extinguished. Could we see a Coinbase-Blackrock Bitcoin ETF on the horizon?
Coinbase Planned a Bitcoin ETF in 2018…With Blackrock
Coinbase made headlines in September 2018 when it was reported that it was tapping up investment giant Blackrock for a potential run at a Bitcoin ETF. This was in the depths of the Bitcoin bear market when an ETF was the only thing that could have saved it, and hopes were high that one of the many applications in with the Securities and Exchange Commission (SEC) at the time would pass.
As we know now, of course, they were all rejected, and it seems that this actuality dampened Coinbase’s plans – nothing was ever heard of again about its plans for a Bitcoin ETF. However, who should come knocking on Coinbase’s door back earlier this year but Blackrock, asking Coinbase to act as custodian and trading platform for the $10 trillion investment giant’s answer to offering crypto solutions to its clients.
As a result of the deal, Coinbase Prime will provide crypto trading, custody, prime brokerage, and reporting capabilities to Aladdin’s client base, who are also clients of Coinbase.
New Partnership to Rekindle Old Plans?
The question now of course is will this partnership reawaken those shelved plans to combine for a Bitcoin ETF? There doesn’t seem to be a rush, with the SEC still handing out rejections like Halloween candy, which gives the two companies time to build their working relationship and potentially dust off the proposal and give it another look.
Who knows where the crypto market will be in a year’s time, but it wouldn’t be a surprise to see Coinbase formalising these dormant Bitcoin ETF plans, especially with a year’s worth of work with Blackrock under its belt.