Connect with us

Hi, what are you looking for?

Blackrock bitcoin
Blackrock bitcoin

Cryptocurrency

BlackRock announces via Coinbase a 12-hour withdrawal procedure for Bitcoin ETF

BlackRock has revised its Bitcoin ETF application, requiring Coinbase to manage Bitcoin withdrawals inside 12 hours, therefore addressing concerns over the integrity of on-chain settlements. BlackRock informs us all ETF transactions settle on-chain, despite concerns about “paper BTC” impacting price.

Given investor concerns, BlackRock has a 12-hour withdrawal policy for Bitcoin ETFs

Rising concerns over Coinbase’s Bitcoin handling for ETFs have led BlackRock to create a new withdrawal policy. The largest asset management in the world turned in an amendment to the Securities and Exchange Commission of the United States (SEC) on September 16 detailing how Bitcoin withdrawals from Coinbase should be handled within twelve hours of getting an order.

Resolving Problems Regarding “Paper BTC”

Investors have queried if Coinbase is purchasing actual Bitcoin or only “paper BTC,” which are effectively Bitcoin IOUs. The static price of Bitcoin over the past three months—despite large institutional inflows from Bitcoin ETFs—has exacerbated these concerns. The usage of paper BTC might, theories suggest, artificially reduce the value of the cryptocurrency.

BlackRock’s most recent update is to increase transparency and provide investors trust on the whole on-chain settlement of every Bitcoin purchase. Serving eight of the nine recently approved Ether ETFs and 10 of the eleven biggest spot Bitcoin ETFs, Coinbase, the custodian of these assets, has been under fire to exhibit proper management of them.

ETFs have nothing to do with the Bitcoin price drop.

Notwithstanding such worries, Bloomberg analyst Eric Balchunas disputed the theory that Bitcoin ETFs were responsible for the present price decline. He claimed since their launch, these ETFs have amassed on-chain Bitcoin assets at around $59 billion. Comprising around $22.5 billion in Bitcoin, BlackRock’s own ETF, IBIT, boasts more than 38% of the market share.

Balchunas said that the liquidity of these ETFs has regularly maintained the value of Bitcoin, therefore refuting the theory that they are devaluating it. Instead, the analyst stressed that long-term holders, “HODLers,” could be selling, which would assist to explain the price stagnation.

In general

The new 12-hour withdrawal policy of BlackRock helps to ease concerns over Coinbase’s custodial practices. Maintaining confidence in these ETFs requires addressing investor concerns and ensuring on-chain settlement transparency as institutional Bitcoin investment grows.

author avatar
CryptoCorn
CryptoCorn is Editor and Author at 4C Media Co. and covers all stories and news related to Crypto & Finance. Excellent blogger and Passionate Crypto Trader. Follow her on twitter at @cryptocorn7.
Advertisement

You May Also Like

Cryptocurrency

Though European banks are unable to keep up with the demand, the crypto market is attracting more attention these days. Though consumer and business...

Cryptocurrency

In a significant turn for the cryptocurrency industry, the US Securities and Exchange Commission (SEC) is no longer moving forward with its inquiry into...

Cryptocurrency

A court has tentatively lifted the three-month ban on Upbit, the largest digital asset exchange in South Korea, marking a significant development for the...

Cryptocurrency

Paul Atkins, the nominee for SEC Chair, came under fire during a fraught Senate Banking Committee hearing for his ties to the crypto business...

polkadot
Polkadot (DOT) $ 4.03 0.35%
bitcoin
Bitcoin (BTC) $ 83,367.34 0.78%
ethereum
Ethereum (ETH) $ 1,824.18 1.85%
cardano
Cardano (ADA) $ 0.650834 2.26%
xrp
XRP (XRP) $ 2.06 0.64%
stellar
Stellar (XLM) $ 0.26291 1.00%
litecoin
Litecoin (LTC) $ 83.65 2.57%