BlackRock Bitcoin ETF to Partners with Coinbase

[Aanuoluwatofunmi]

BlackRock is set to have a signed collaborative agreement with the exchange Coinbase on Bitcoin Exchange Traded Fund (ETF) to allows the use of thier  Spot trading market values for proceedings of their services with their investors, but it's to recall that the Security Exchange Commission (SEC) in US have always oppose any attempt for the use of this same bitcoin ETF grant over time and on the same time granted many applications in time passed for Bitcoin Traded Fund over many institutions.

If approved, the Bitcoin ETF would open doors to a new wave of adoption and provide investors with an unprecedented opportunity to participate in the Bitcoin market through a regulated and accessible investment vehicle.https://bitcoinmagazine.com/markets/blackrock-nears-filing-bitcoin-etf-application-leveraging-coinbase-custody

We could notice that the Security Exchange Commission (SEC) have been the one saddled with the responsibility to monitor the affairs of Exchange Traded Fund (ETF) and we hope to see their grant and approval on BlackRock and not a turned offer decision, BlackRock believes this will lead to a rapid business development it has created and served an avenue for them to deliver best with it's clients and investors over Spot Bitcoin ETF it's going for.

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[bbc.reporter]

I am not quite certain if I should be optimistic or not because the SEC with uncle Gary in charge have denied all applications for a Bitcoin ETF.

This news development also appears like the cryptonews media have no more new storylines to write and have decided to reuse an old storyline from 2020 and 2021 hehehe. Does BlackRock know something or will we be their exit liquidity again?

[adaseb]

Turns out this is not an ETF it’s a trust. Similar to GBTC and GLD. So it’s not exactly the same but for us users it doesn’t make a difference.

SEC has been rejecting these ETFs for years so why is this a big deal? Well because it’s BlackRock which is huge in the industry and they wouldn’t waste their time if they knew it wouldn’t have a chance at getting approved. Also since it’s a trust it has a better chance of getting approved.

[mk4]

I think people should be cautiously optimistic as all the past hype we had with ETF filings ended up being a nothing burger. Though on the bright side, we're talking about BlockRock here which is a huge ass company. They most definitely have the resources to hopefully get this approved.

[arbiter5]

Fuck centralized entities. Non-custodial bitcoin only or bust.

[Crypt0Gore]

For all those saying that this isn't the first time that Black Rock tried to get ETF approval and SEC was always there to reject, there is something we are missing here.

Ask yourself, why now? Why now that SEC is presently destroying the crypto market? This should be the best time for Black Rock to keep their mouth shut but they made this move again and now that all this shits are happening?

Black ROCk is up to something, they don't just come out now only to get rejected again, they have heard something, they know something we don't, it seems something is about to go down.

It's all present there, we are not just looking enough, this time, with the ETF, could be different.

[hugeblack]

With all the news regarding the SEC, ETF approval is excluded at the present time, but it may be the news that may move the price in 2025, just as it was with Tesla and Elon Musk, especially since in the year 2024 economic changes may occur in the United States that make what was currently excluded It is something possible in the future.

In general, I do not hope that someone is overly optimistic that this will not happen soon or will not happen with the current market capacity.

[Aanuoluwatofunmi]

For all those saying that this isn't the first time that Black Rock tried to get ETF approval and SEC was always there to reject, there is something we are missing here.

Ask yourself, why now? Why now that SEC is presently destroying the crypto market? This should be the best time for Black Rock to keep their mouth shut but they made this move again and now that all this shits are happening?

Black ROCk is up to something, they don't just come out now only to get rejected again, they have heard something, they know something we don't, it seems something is about to go down.

It's all present there, we are not just looking enough, this time, with the ETF, could be different.

Well i may not be in total support to your points raised here but also, if we are to give it more of a closer look, we should be able to derive one of two facts out of this, some have already said that it was at the cause of the move by BlackRock on Spot Bitcoin ETF that revived the market abit from going more downward below $24,000 which resulted that it experience a steady rise of about 1.3% surge within the 24 hours of when this news came in, that catapulted it resistance to $25, 700 as at yesterday's market price, but let's keep on being anticipated for more things getting unfold through this.

[tranthidung]

I am not quite certain if I should be optimistic or not because the SEC with uncle Gary in charge have denied all applications for a Bitcoin ETF.

Let's support to fire that scammer to save the cryptocurrency industry.

Uncle Gary did not protect investors when he could but he paid his attention on something else, personal power. From his past failures and ignorance to protect investors in fiascos of Terra and FTX, I don't believe in his words that he does things to protect investors.

His words usually are not backed by existence laws and regulations and it's not a right style of a person who in charge of a very important position, Chair of SEC.

[paid2]

Given the connections/privileges that Blackrock must have, don't you think that the SEC is acting as an auditing tool for Blackrock in this case?

Before backing the BTC's ETF, wouldn't it be in Blackrock's interest to ensure that Coinbase has already weathered the storm and is solvent and in compliance with SEC and other regulations?

[franky1]

reading into the filing.. blackrock are trying to be vague about the conversion rate..
they say things like

The Trust seeks to reflect generally the performance of the price of bitcoin. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in bitcoin rather than by acquiring, holding and trading bitcoin directly on a peer-to-peer or other basis or via a digital asset exchange. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in bitcoin, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the bitcoin owned by the Trust at such time, less the Trust’s expenses and liabilities.

this means the spot wont be exact 1:1 with bitcoin. it will vary slightly. much like how stable coins are never actually 100% 1:1
i do laugh when they say

Investors may purchase and sell Shares through traditional securities brokerage accounts, and can avoid the complexities of handling bitcoin directly (e.g., managing wallets and public and private keys themselves, or interfacing with a trading platform), which some investors may not prefer or may find unfamiliar.

funny part is that investors buying shares need to manage passwords portfolios and interfacing with a share trading platform..
as for if blackrock should be using coinbase as the custodian vault.. well the same story is for grayscale
if enough businesses mention their desire to trust coinbase it pushes the SEC to not try to destroy coinbase. because if the SEC tries to destroy coinbase directly causing business costs/losses. the businesses can then sue the SEC

[Outhue]

Well, it's a whole new story this morning, Binance Exchange have already strike a deal with SEC and now all US customer's funds are back with Binance, something that I have been thinking as the only solution to the problem, they want the piece of the pie, that's all.

I knew that's why Black Rock had the confidence all along, they knew that this time around will be different and they must have known that SEC will settle with Binance, the confidence is now back to the crypto community either you like it or not.

The Hong Kong regulators have have also revealed that the country wants to be the international crypto hub very fast, that's why they have forced their banks to offer services to Bitcoin and crypto.

Things are going well in disguise of looking bad.

[hugeblack]

i do laugh when they say

Investors may purchase and sell Shares through traditional securities brokerage accounts, and can avoid the complexities of handling bitcoin directly (e.g., managing wallets and public and private keys themselves, or interfacing with a trading platform), which some investors may not prefer or may find unfamiliar.

Unfortunately, this approach is for all companies and even individuals. I do not know why the individual is afraid of keeping his money to the extent that he trusts it with these central entities or cloud services or any service that tells him that your money is safe and you can access it whenever you want, so trust funds like this will bring the wealthy who think about Bitcoin As an investment asset next to their investment portfolios without even diligence in understanding what Bitcoin is.

as for if blackrock should be using coinbase as the custodian vault.. well the same story is for grayscale

I see all the tightening that is happening now as an attempt to keep the multinational platforms out of the US and therefore Coinbase will be the beneficiary of any regulatory complications.

[franky1]

i do laugh when they say

Investors may purchase and sell Shares through traditional securities brokerage accounts, and can avoid the complexities of handling bitcoin directly (e.g., managing wallets and public and private keys themselves, or interfacing with a trading platform), which some investors may not prefer or may find unfamiliar.

Unfortunately, this approach is for all companies and even individuals. I do not know why the individual is afraid of keeping his money to the extent that he trusts it with these central entities or cloud services or any service that tells him that your money is safe and you can access it whenever you want, so trust funds like this will bring the wealthy who think about Bitcoin As an investment asset next to their investment portfolios without even diligence in understanding what Bitcoin is.

as for if blackrock should be using coinbase as the custodian vault.. well the same story is for grayscale

I see all the tightening that is happening now as an attempt to keep the multinational platforms out of the US and therefore Coinbase will be the beneficiary of any regulatory complications.

well the groups that partner with the DCG(grayscale/blockstream/coinbase) family want to set barriers of entry and have hoarding bitcoin as annoying as hell for individuals all so that people rely on central figures to become the authorisers of value. and ofcourse take a middleman fee for the service.

do you think that hundreds of millions of dollars being pumped into the core developer dev group was a 'free hand-out'. nah, its to set features and functions to make bitcoin annoying to handle directly. and also as a separate campaign lobby regulators to set barriers of entry so that no independent small international business cant just set up shop in crypto, but allow easy entry for the ready set up institutions already regulated to get a free pass
its wallstreet all over again

[DeathAngel]

The approval record for Blackrock requesting ETF’s by the SEC is 575 with 1 denial. 575-1 I think the odds are heavily in the favour of approval. This is probably why the SEC has denied all spot bitcoin ETF’s previously, they were paving the way for the big boys.

Obviously not your keys not your coins but if this is approved institutional investors will pile in. Pension funds & 401k’s will be permitted to invest. This will drive the next big run up. Buckle up, it’s going to be fun.

[franky1]

The approval record for Blackrock requesting ETF’s by the SEC is 575 with 1 denial. 575-1 I think the odds are heavily in the favour of approval. This is probably why the SEC has denied all spot bitcoin ETF’s previously, they were paving the way for the big boys.

Obviously not your keys not your coins but if this is approved institutional investors will pile in. Pension funds & 401k’s will be permitted to invest. This will drive the next big run up. Buckle up, it’s going to be fun.

the benefits hoped would be that if approved.
a. blackrock will set precedence of a accepted template which other institutions can then emulate. and yes previous applications declined do seem to be about the SEC waiting for their wallstreet big boy pals to be first movers.
b. if buying 1k bundles of bitcoin to call them 'baskets' of shares say 40,000shares. the hopes are alot of whale purchasing on open CEX market to push the price up

however most of these ETF sponsors have already grabbed loads of coins via private OTC markets which have not impacted the CEX market price. and if they continue to just buy from private OTC services then new basket creations wont push the CEX market price up much

i can easily see DCG selling their 'trust' to blakcrock if blackrock gets approved where DCG become partners or exit to retire to an exotic island passing their closed private customers over to blackrock to manage

[Wind_FURY]

reading into the filing.. blackrock are trying to be vague about the conversion rate..

Never mind trying to be vague about the conversion rate, what's this?

In the event of a hard fork of the Bitcoin network, the Sponsor will, if permitted by the terms of the Trust Agreement, use its discretion to determine which network should be considered the appropriate network for the Trust’s purposes, and in doing so may adversely affect the value of the Shares.
 
In the event of a hard fork of the Bitcoin network, the Sponsor will, as permitted by the terms of the Trust Agreement, use its sole discretion to determine, in good faith, which peer-to-peer network, among a group of incompatible forks of the Bitcoin network, is generally accepted as the Bitcoin network and should therefore be considered the appropriate network for the Trust’s purposes. The Sponsor will base its determination on whatever factors it deems relevant, including but not limited to, the Sponsor’s beliefs regarding expectations of the core developers of bitcoin, users, services, businesses, miners and other constituencies, as well as the actual continued acceptance of, mining power on, and community engagement with, the Bitcoin network, or whatever other factors it deems relevant. There is no guarantee that the Sponsor will choose the digital asset that is ultimately the most valuable fork, and the Sponsor’s decision may adversely affect the value of the Shares as a result. The Sponsor may also disagree with Shareholders, the Bitcoin Custodian, other service providers, the Index Administrator, cryptocurrency exchanges, or other market participants on what is generally accepted as bitcoin and should therefore be considered “bitcoin” for the Trust’s purposes, which may also adversely affect the value of the Shares as a result.

They're trying to be vague in what truly is Bitcoin, and they're making themselves have the legal right to tell their investors that, in case of a hard fork, the "real Bitcoin" will be under their discretion.

BlackRock could essentially fork Bitcoin, then tell the holders of their ETF that it's the real Bitcoin.

Plus they should specify the date of "in the event of a hard fork", and say forks before X are not Bitcoin. From the current wording, BlackRock could say that BCash is Bitcoin under their discretion?

[franky1]

windfury..  read more

The Sponsor will base its determination on whatever factors it deems relevant, including but not limited to, the Sponsor’s beliefs regarding expectations of the core developers of bitcoin, users, services, businesses, miners and other constituencies, as well as the actual continued acceptance of, mining power on, and community engagement with, the Bitcoin network, or whatever other factors it deems relevant.

basically they will follow the majority of the community in regards to;

majority of community agreement based on
hashrate
services(exchanges, merchants)
and yep follow the chain core devs are authoritarian of

however.. my main point in other posts is that the share price will not precisely match bitcoins spot price due to many factors such as the one mentioned in my previous post
things like

The number of bitcoins represented by a Share will decline each time the Trust pays the Sponsor’s Fee or any Trust expenses not assumed by the Sponsor by transferring or selling bitcoins.

meaning 1 share will not be equal forever to 0.000x btc
meaning if you bought 1 share 20 years ago expect it to have atleast 40% less sats to convert to after atleast the sponsor fee deducts 2% of sats from the conversion rate each year plus all of the trusts own costs


however if you only wish to learn about forks
https://www.sec.gov/Archives/edgar/data/1980994/000143774923017574/bit20230608_s1.htm
page 10
it mentions when bitcoin does do a fork. the sponsors claim rights to the 'air-drop'- 'fork coins' which the sponsor can sell at its own leisure under its own discretion. but vaguely suggests that it will pay it out to share holders as dividends in the form of fiat money. i say vaguely because theres no guarantee and instead they can just not claim forked coins to sell to give dividends

With respect to any fork, airdrop or similar event, the Sponsor shall, in its sole discretion, determine what action the Trust shall take. In the event of a fork, the Sponsor will, as permitted by the terms of the Trust Agreement, determine which network it believes is generally accepted as the Bitcoin network and should therefore be considered the appropriate network, and the associated asset as bitcoin, for the Trust’s purposes.
The Sponsor may decide to cause the Trust to sell any Incidental Rights or IR Virtual Currency for cash (including, as determined by the Sponsor, in the case of a fork, the asset that is not generally accepted as bitcoin, or in the case of an airdrop, the airdropped asset) and distribute the cash proceeds or distribute them in-kind to DTC, and registered holders of Shares are entitled to receive such distributions in proportion to the number of shares owned. However, the Sponsor may instead determine, in its sole discretion, to permanently and irrevocably abandon such Incidental Rights or IR Virtual Currency for no consideration. In the case of abandonment of Incidental Rights or IR Virtual Currency, the Trust would not receive any direct or indirect consideration for the Incidental Rights or IR Virtual Currency and thus the value of the Shares will not reflect the value of the Incidental Rights or IR Virtual Currency.

[OgNasty]

Anyone have any details of their agreement with Coinbase? I’m wondering if Coinbase takes a percentage of the total holdings or if it was a one time thing or what. If it’s a deal based on a percentage and this ETF turns out to be massive, this could be a good source of revenue for Coinbase. That to me makes them a more interesting investment than their fee heavy exchange.

[franky1]

Anyone have any details of their agreement with Coinbase? I’m wondering if Coinbase takes a percentage of the total holdings or if it was a one time thing or what. If it’s a deal based on a percentage and this ETF turns out to be massive, this could be a good source of revenue for Coinbase. That to me makes them a more interesting investment than their fee heavy exchange.

coinbase offers a vault service
coinbase is the service provider and blackrock are the customer of coinbase vault.
coinbase is simply the vault(custodian) for blackrocks coins in trust

its not the same as the "partnership" coinbase has with grayscale

blackrock is simply a customer of coinbase