News Scrap

The latest decision by BlackRock’s fund manager aims to make the Bitcoin spot ETF more attractive to Bitcoin maximalists.

BlackRock is the world’s top fund management firm. Earlier this year, the United States Securities and Exchange Commission (SEC) gave the green light for the approval of several Bitcoin spot ETF applications, filed by multiple fund managers, including BlackRock. Since then, BlackRock has emerged as the top digital asset fund manager, with its Bitcoin spot ETF fund, IBIT, seeing high trade volumes.

In a recent SEC filing, Coinbase Custody updated its Custodial Services Agreement, mandating that withdrawals of digital assets to a public blockchain address must occur within 12 hours of receiving instructions from the Trust or its authorised representatives. This update applies, provided that specific balance requirements are met.

Blackrock News: @BlackRock ammends their Custody agreement with @coinbase – files with @SECGov

As detailed in the SEC filing, the amendment updates Section 2.1 of the Custodial Services Agreement. Coinbase Custody must now process a withdrawal of digital assets to a public… pic.twitter.com/zzhcmzvqoB

— MartyParty (@martypartymusic) September 23, 2024

This amendment is not about the satisfaction of Bitcoin spot ETF traders, Coinbase, or BlackRock, but rather aims to attract support from Bitcoin maximalists.

Over the last 10 days, many Bitcoin enthusiasts have claimed that Bitcoin spot ETF products have caused significant losses in the Bitcoin spot market, alleging that top fund managers suppress Bitcoin’s trade price due to the delay between actual Bitcoin trades and Bitcoin spot ETF product trades. Some crypto advocates have even speculated that BlackRock and Coinbase create a favorable environment for price manipulation.

Top executives and supporters of Bitcoin spot ETF products have clarified their stance on such speculations, relying on facts to counter the allegations.

However, this latest decision by BlackRock is likely to garner significant support from critics, ensuring that Bitcoin’s trade price is not manipulated, either through financial practices, intentionally or unintentionally.