U.S.-based cryptocurrency platform Coinbase is reportedly seeking to form a cryptocurrency exchange-traded fund (ETF) with investment management company BlackRock, according to Business Insider.
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The anticipated ETF will allow retail investors access into the cryptocurrency market.
According, Coinbase has “held conversations” with BlackRock’s blockchain working group, citing “sources familiar with the matter.”
It “remains unclear whether the talks were a one-off or part of ongoing conversations between Coinbase and BlackRock.”
In August, Coinbase announced a fee reduction from 2 to 1 percent on its Index Fund’s “for all new and existing investors,” stating the company’s aims to “help introduce a new category of institutional investors into the cryptocurrency space.”
The U.S. Securities and Exchange Commission (SEC) denied nine applications for a varity of ETFs on August 22. However, the next day, the financial regulator stated they would review the decision further. No deadline for the announcement was given.
After the decision, SEC Commissioner Hester M. Peirce disagreed with agencies stance stating the SEC overstepped its “limited role”, focusing on the entire bitcoin market, rather than the derivative.
Peirce continued to suggest the rejection of a bitcoin ETF will likely “inhibit” the standardization of the bitcoin market.