Why Did Blackrock Include Coinbase in Its Bitcoin ETF?

BlackRock, the world’s largest asset manager, has once again filed a request with the SEC to create a Bitcoin ETF.  This second attempt by BlackRock to introduce a Bitcoin ETF comes with an intriguing twist—the inclusion of Coinbase, one of the leading cryptocurrency exchanges.

This article delves into the reasons behind BlackRock’s decision to partner with Coinbase and examines the potential implications of this collaboration.

The Second Time’s the Charm & Coinbase’s Role in the Partnership

BlackRock’s renewed effort to launch a Bitcoin ETF reflects the growing interest among institutional investors. After the initial filing some weeks ago, BlackRock’s first attempt failed. It was due to concerns raised by the SEC regarding market manipulation and investor protection. However, with the evolving regulatory landscape, the timing seems more favorable for BlackRock’s proposal this time around.

So, the inclusion of Coinbase in BlackRock’s latest ETF proposal is a strategic move. It solidifies the legitimacy of the project. Coinbase has emerged as a leading platform for buying, selling, and storing cryptocurrencies. Catering to both retail and institutional investors. Here are the reasons I think BlackRock included Coinbase:

  1. Expertise and Infrastructure: Their robust infrastructure, compliance frameworks, and security measures ensure the safe handling of digital assets. By partnering with Coinbase, BlackRock gains access to its expertise, thus bolstering the chances of success for the proposed ETF.
  2. Regulatory Compliance: Coinbase’s proactive approach towards regulatory compliance and its track record of working closely with global regulators. These significantly strengthen BlackRock’s position. Coinbase’s established relationships with regulatory bodies. This can help address the SEC’s concerns effectively and expedite the approval process.
  3. Market Liquidity and Price Discovery: Coinbase’s prominence ensures liquidity and efficient price discovery for Bitcoin. The partnership with Coinbase provides BlackRock’s ETF with a reliable market for trading Bitcoin. This will reduce concerns over market manipulation and foster a more transparent environment.
  4. Investor Confidence: Coinbase’s reputation as a secure and reliable platform plays a vital role in instilling investor confidence. Institutional investors often prioritize partnering with trusted entities to manage their investments. By associating with Coinbase, BlackRock demonstrates a commitment to safeguarding investor interests.

Potential Implications of BlackRock – Coinbase Partnership

This collaboration has the potential to reshape the cryptocurrency landscape in three ways:

  1. Mainstream Adoption: The approval and launch of a Bitcoin ETF backed by BlackRock would signify increased acceptance of cryptocurrencies. It could encourage hesitant institutional investors to allocate funds to digital assets.
  2. Regulatory Precedent: A successful partnership between could set a regulatory precedent for future cryptocurrency-related investment products. This could pave the way for more streamlined processes for other asset managers looking to enter the space.
  3. Increased Market Stability: The introduction of a regulated and transparent Bitcoin ETF may mitigate some of the concerns around market manipulation, volatility, and investor protection. This could help stabilize the crypto market by attracting more long-term investors. Ultimately contributing to its maturity and reducing price volatility.


BlackRock’s decision to include Coinbase represents a significant step forward for the mainstream adoption of cryptocurrencies. Coinbase’s expertise, regulatory compliance, market liquidity, and reputation contribute to the credibility of the proposed ETF. If successful, this partnership has the potential to transform the cryptocurrency landscape. This will facilitate the entry of institutional investors into the digital asset space.

However, it’s important to note that the approval of a Bitcoin ETF is not guaranteed, and the SEC’s concerns regarding market manipulation and investor protection still need to be addressed. Nevertheless, the inclusion of Coinbase in BlackRock’s proposal strengthens the overall case for a regulated and transparent investment vehicle for cryptocurrencies.

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