[2018-09-07] Coinbase Eyes ETF With Help From BlackRock

[bbc.reporter]

ETF watchers who are fixated that this might cause bitcoin's redemption from the low price of $6000 should be happy again hehehe. I reckon Coinbase might have the right connections to get this one through and supported by a company that manages trillions of dollars, no less.



As reported by Business Insider, the cryptocurrency exchange provider has been liaising with BlackRock, a U.S. investment management company with some $6 trillion in assets under its purview. Individuals close with the matter said that Coinbase has sought guidance from BlackRock’s blockchain working group.

While Coinbase spoke directly with employees involved with BlackRock’s blockchain arm, the exchange is after the organization’s expertise in legacy markets. The firm has made a name for itself with its focus on hedge funds and ETFs; iShares, its most popular suite of ETFs, for instance, accounted for $1.41 trillion of BlackRock’s assets under management in 2017.

If Coinbase actually moves forward with an ETF filing, the product would flesh out the exchange monolith’s institutional-grade offerings, which include custody and index fund services for accredited investors.

But the ETF would need to get approved first. What’s more, Coinbase isn’t the only runner in the race. Currently, the U.S. Securities and Exchange Commission’s top ranking officials are reviewing nine bitcoin ETFs that were rejected at the staffing level earlier this summer.

Read in full https://bitcoinmagazine.com/articles/coinbase-eyes-etf-help-blackrock-business-insider-report/

[audaciousbeing]

And now the major pullers in the crypto space and bent on not allowing everyone move on from this point of ETF to face another thing. When I read the news about the acquisition by Coinbase a part of me was trying to understand the relationship between what Coinabase is doing and what BlackRock is also dishing out to its customers but alas its a strategic one which would either bring a good outcome or further worsen the already bad situation. There are two outcomes to this

1. If ETF is eventually approved because of this, it would mean that the committee are bias to favor Coinbase as I don't see any change in circumstances from the last rejected one and the one putting forward by Coinbase and undue favor to a party would not augur well for the entire market.

2. If the outcome is is like the others (negative) it means for once again we are giving the ETF committee the power and relevance that they can play with crypto and someone else will still come tomorrow to ask for their approval.

[Kprawn]

Coinbase are quickly moving more towards being a Fiat based Bank and financial institution, like Circle did a few years ago. I

will not be surprised when they change their business model in the future. The third party intermediary services are centralized

and they have to abide by the KYC/AML regulations, so they are part of the problem, not the solution. This was one of the

reasons why I started to use bitcoins, because I wanted to have an alternative to these types of fiat based services. 

[veleten]

it is sad that the expectations of ETF are influencing the price that much (if they do ,obviously which is not 100% proven )
the news of Coinbase,ETF or Goldman Sachs , latter said to reconsider launching a cryptocurrencies division, should not have such an impact
seeing bitcoin go down from 7400$ to 6400$ in a matter of a day I read the news and only those three seem to be relevant enough to cause such a drop

[Slow death]

it is sad that the expectations of ETF are influencing the price that much

it seems to me that people are selling their altcoins to buy bitcoin and then they sell their bitcoin to dollar, to reduce risks of losing money, as the SEC is rejecting any ETF it is very difficult to believe that they approve some ETF and if 30th of September the SEC does not approve the ETF then the price will fall a lot. it's sad, but the reality is that the crypto world is moved by news


about this: " Coinbase Eyes ETF With Help From BlackRock " Is only a dialogue that neither side showed any palpable result. We should not get excited about this.

[Samarkand]

...
This was one of the reasons why I started to use bitcoins, because I wanted to have an alternative to these types of fiat based services. 

And yet many people are actually celebrating every new ETF application and
every announcement of another Bitcoin derivative. If this development continues,
the same people that profit from the legacy financial system will also profit from the
new financial system that is built around Bitcoin.

On the one hand Coinbase has been the entrance for many newbies into
the cryptocurrency world. But on the other hand they are already involved
in various practices that hurt the free flow of Bitcoins (e.g. they close
accounts when you are making gambling-related transactions, require KYC
and have a history of suspicious behavior around the addition of new
altcoins like LTC or BCH).

[gentlemand]

What I find interesting is that as time passes it becomes clearer and clearer how pathetic and shit most alts are and how unique Bitcoin is when you take into account competence, governance and future viability, yet Coinbase keeps on doubling down on their dislike of BTC.

Pretty much all traditional financiers only talk about Bitcoin yet here are Coinbase thinking of putting together a 'basket' of bollocks.

[bbc.reporter]

@gentlemand. It has now become part of bitcoin politics to dislike bitcoin so that the people on the other side of the squabble could start pressuring the developers to do their demands.

But I reckon that Brian Armstrong has not been as loud politically recently.

@Slow death. Might that be Coinbase's plan of a pump and dump?

[squatter]

@gentlemand. It has now become part of bitcoin politics to dislike bitcoin so that the people on the other side of the squabble could start pressuring the developers to do their demands.

I think Coinbase is long done playing that game. The block size debate and Brian's personal involvement was a PR nightmare for the company. I imagine their shareholders put a stop to it.

I think their push into altcoins is more about their perception of where the market is headed. It's the same reason GS/Circle bought Poloniex with plans to make them a legitimate broker-dealer. They might be wrong about the market -- companies are wrong all the time. But that's what I think.

[Betwrong]

it is sad that the expectations of ETF are influencing the price that much (if they do ,obviously which is not 100% proven )
the news of Coinbase,ETF or Goldman Sachs , latter said to reconsider launching a cryptocurrencies division, should not have such an impact
seeing bitcoin go down from 7400$ to 6400$ in a matter of a day I read the news and only those three seem to be relevant enough to cause such a drop

If it looks like the events you've mentioned should not have such an impact on the price, maybe it's because they actually didn't cause the drop. I tend to believe that it was again a big sell by a whale or two which caused the drop. That's how they regularly make money, sell big amounts to drop the price, then buy back at lower price, then sell again if price has risen 20%, and so on. They have put it on the loop ad infinitum (as they wish, but in reality it won't work at some point, when the demand will be so high that dumping of 100,000 BTC will have almost zero effect on the market).

[veleten]

it is sad that the expectations of ETF are influencing the price that much (if they do ,obviously which is not 100% proven )
the news of Coinbase,ETF or Goldman Sachs , latter said to reconsider launching a cryptocurrencies division, should not have such an impact
seeing bitcoin go down from 7400$ to 6400$ in a matter of a day I read the news and only those three seem to be relevant enough to cause such a drop

If it looks like the events you've mentioned should not have such an impact on the price, maybe it's because they actually didn't cause the drop. I tend to believe that it was again a big sell by a whale or two which caused the drop. That's how they regularly make money, sell big amounts to drop the price, then buy back at lower price, then sell again if price has risen 20%, and so on. They have put it on the loop ad infinitum (as they wish, but in reality it won't work at some point, when the demand will be so high that dumping of 100,000 BTC will have almost zero effect on the market).

in fact we do not know about the cause-effect and can only speculate
but to drive the price down that much required around 17.000 bitcoins to be sold (according to Bitfinex charts calculations yesterday)
it is almost half of the total trading volume, so news or not news, someone sold that much and we do not know why or who
could be a random whale who decided to clear some profit and cash in or a group of traders reacting to the news or ....something else like this:
https://bitcointalk.org/index.php?topic=5007367.0