Although the US Securities and Exchange Commission (SEC) recently rejected nine bitcoin ETF applications , Business Insider quoted sources saying that the cryptocurrency exchange, Coinbase, is considering launching a cryptocurrency ETF to allow retail investors to enter cryptocurrency trading. They have sought help from the famous asset management company BlackRock.
According to the report, Coinbase has discussed with BlackRock’s blockchain working group in recent weeks and learned about the latter’s expertise in launching exchange-traded products (ETPs). However, it is still unclear whether the discussion is part of a one-off or ongoing dialogue between the two parties. According to sources, the BlackRock members did not make any specific recommendations to Coinbase during the meeting.
In June of this year, Coinbase announced the launch of a cryptocurrency index fund for qualified investors. Sources pointed out that ETFs are also likely to track different cryptocurrencies, not just Bitcoin. It is widely believed that the Bitcoin ETF may prompt more retail investors to enter the crypto market. Coinbase’s competitors Gemini, Bitwise Asset Management, and VanEck also intend to introduce cryptocurrency ETFs.