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Coinbase and BlackRock Join Race for Cryptocurrency ETF

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Bitcoin ETF

Exchange-Traded Funds (ETF) have been one of the biggest question marks for cryptocurrencies this year. The US SEC continues to investigate and deliberate.

And they keep turning proposals down. However, as we start wrapping up 2018, things may be looking up for a crypto ETF.

Why does an ETF matter?

For investors, an ETF could add much-needed security. It would mean having the option of a central trust in crypto’s trustless system.  While not everyone would necessarily want to invest in ETFs, many big firms and hedge funds might.  The familiarity of an ETF could attract those who are otherwise too wary of cryptos. Obviously, this could add a lot of momentum to cryptocurrency. Also, an ETF would prove much easier for novices. With a central trust, you wouldn’t even need to use a wallet or do much else to manage your funds.

Many companies submitted ETF projects to the SEC, and so far none have passed.  Although proponents argue ETFs will add security, the SEC is cautious about the security of cryptocurrency itself.  As commissioner Kara Stein explains, “Whatever fund presents a concept to us will have to show how they can get accurate valuations, how they make sure that there is physical custody, and how to make sure that there is adequate liquidity”.

Investment company VanEck, however, is confident and determined to make a Bitcoin (BTF) ETF happen soon

A few weeks ago, they sat down with the SEC and gave a presentation.  They explained how a lot has happened this year to make ETFs more viable.  Developers and exchanges have already proven other brokerage services, such as futures, to be secure.  And one of the SECs biggest concerns was the illegal uses of cryptos such as money laundering.  But recently, the AML watchdog, the Financial Action Task Force, announced they’ll soon release global compliance standards.  Finally, VanEck plans to limit entry  fees to 25 Bitcoin (BTC) as a sort of test ground for only big investors.

And now, Coinbase is working on an ETF too

In fact, Coinbase has been in talks with BlackRock.

Though there is no additional regarding this yet, just the fact that Coinbase is interested shows how substantial the interest in crypto ETFs is.

 

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