Coinbase Seeks Help From BlackRock As They Start To Venture In Exploring Bitcoin ETF

San Francisco based crypto exchange and probably the biggest name in the crypto ecosystem, Coinbase has reportedly been looking into kickstarting a crypto ETF. In this effort, Coinbase has looked for help from $6 trillion asset manager BlackRock.

Coinbase has been leading the crypto community in a variety of businesses ranging from asset management, Venture capital, trading and more. Now, they want to be ahead of the pack in the race to ETF. They have been looking at creating an exchange-traded product tied to crypto, according to people familiar with the matter, as a way to allow retail investors to gain access to the volatile crypto markets.

BlackRock has a blockchain working group which was started in 2015 and consists of employees across its numerous businesses and its goal is to identify applications of blockchain-related technologies in financial services.

In recent weeks, Coinbase has been reportedly having conversations with members of BlackRock's blockchain working group to capture the firm's expertise at launching exchange-traded products. However, BlackRock representatives from the working group didn't give any concrete recommendations to the crypto exchange operator. IT still remains unclear if the two companies will work together.

It is to be noted that BlackRock itself has no interest in being a crypto fund issuer. Their CEO Larry Fink has said the firm's clients have expressed zero interest in the $300 billion markets for digital currencies while referring to Bitcoin as an “index of money laundering.”

Coinbase has joined a long list of firms interested in developing a crypto ETF, including rival Gemini, Bitwise Asset Management, and VanEck. According to a Coinbase insider, the proposed ETF would also likely track many cryptos, not just bitcoins.

A Bitcoin ETF has been viewed as a logical next step in its maturation as an asset and could precipitate the entrance of more retail investors into the crypto market. However, the idea of a bitcoin ETF has received push-back from regulators who don't think markets for cryptos are correctly observed.