San Fransico-based cryptocurrency giant Coinbase is reportedly exploring a possible crypto-based exchange-traded fund (ETF) through a collaboration with BlackRock, the world’s largest asset manager with more than $6.3 trillion AUM.
According to a recent report from Business Insider that cites people familiar with the matter, Coinbase has been in conversations with members of BlackRock’s blockchain group in an apparent effort to learn more about the process of launching an exchange-traded product. BlackRock has significant experience in launching ETFs through its iShares division.
If Coinbase were to pursue the public listing of a crypto ETF, it would be joining the likes of ProShares, GraniteShares, Gemini and Direxion, all of which have received denials from the SEC in recent weeks. The next major approval decision is for the Cboe VanEck/SolidX ETF backed by Bitcoin and is currently set for September 30.
This news comes just weeks after reports revealed that BlackRock set up a team to explore launching Bitcoin trading products for its clients. This new team will consist of members from different divisions within BlackRock and will include multi-asset investment strategist Terry Simpson.
Coinbase already offers an index fund for accredited investors. The fund, which recently added Ethereum Classic (ETC), is a market-cap-weighted index of the five digital assets currently offered across Coinbase’s products.
More: Coinbase is exploring a crypto ETF, and it has sought help from $6 trillion Wall Street giant BlackRock
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.