Coinbase enters the exchange-traded fund race

Coinbase enters the exchange-traded fund race
Sep 10, 2018 by Rico Wise

Coinbase has decided that it also wants a piece of action with the digital currency exchange-traded funds and launch one of its own, reaching out to BlackRock for assistance, as per the anonymous reports. BlackRock is a company that handles over 5 trillion US dollars’ worth of assets and has become a pioneer of such kind of funds, also having a working group focused specifically on blockchain innovations.

Previously, the San Francisco-based cryptoexchange has made an announcement about establishing the digital currency index fund for officially recognized financiers. Now Coinbase is joining the ranks of Bitwise, Gemini and VanEck in applying for the right to establish the very first digital currency ETF. Recently, the U.S. SEC has turned down 9 BTC ETF applications.

According to the reporting source, the cryptoexchange intends to establish an ETF, which would track other digital currencies.

BlackRock has stated that it is not interested in the issuance of digital currency funds. The chief executive of BlackRock, Larry Fink, has pointed that the clientele of the firm is not interested in cryptocurrencies and treats BTC as an index for money laundering.

The company has established its own working group for blockchain technologies back in 2015, with aim to determine the applications of blockchain technologies in finance, consisting of members engaged in various businesses of the firm. The representatives of BlackRock’s working group have not advised Coinbase in any way, according to the source, and the extent of their negotiations is unknown.