BlackRock, the world’s largest asset manager with approx. $9 trillion in assets under management, has named Coinbase as SSA counterparty in their updated Spot Bitcoin ETF filing. The decision comes shortly after that the SEC expressed dissatisfaction with previous spot Bitcoin ETF filings, called them “inadequate”. BlackRock’s move marks a step ahead in the challenge for a regulated Bitcoin exchange-traded fund (ETF) in the US.
As the selected SSA partner for BlackRock’s spot Bitcoin ETF filing, Coinbase will play a main role in facilitating the exchange and custody of the Bitcoin assets. Coinbase has gained significant recognition for its robust security measures and compliance standards, making it a suitable partner for BlackRock in navigating in the regulatory landscape. The collaboration between BlackRock and Coinbase aims to create a seamless framework for the ETF’s operations while ensuring compliance with regulatory requirements.
Past SEC Criticism
The SEC’s skepticism of spot Bitcoin ETF applications is a main topic nowadays. The regulator has raised concerns about market manipulation, surveillance and investor protection when evaluating such proposals. In a statement released last Friday, the SEC expressed its view that previous filings did not provide adequate measures to address these concerns and emphasized the need for enhanced market integrity and surveillance mechanisms.
BlackRock’s decision to select Coinbase as its SSA partner demonstrates the firm’s commitment to addressing the SEC’s concerns head-on. As a major player, BlackRock’s support lends credibility to asset class, potentially attracting institutional and retail investors who have been cautious due to a lack of regulatory clarity.
Improving market integrity
BlackRock’s selection of Coinbase as its SSA partner aims to strengthen market integrity by leveraging the exchange’s advanced trading surveillance systems. By monitoring trading activity and implementing strict compliance measures, BlackRock and Coinbase aim to provide a safe and transparent environment for investors.
Another concern for the SEC is the investor protection. The regulators wants to make sure that investors are getting informed about the risks of investing in Bitcoin.
This partnership between BlackRock and Coinbase represents a step toward establishing industry best practices that prioritize investor protection.
Do you think the SEC will approve the ETF Filing this time?