Bitcoin Skeptics Question Coinbase and BlackRock ETF Deal Amid Price Surge
The post Bitcoin Skeptics Question Coinbase and BlackRock ETF Deal Amid Price Surge appeared on BitcoinEthereumNews.com. Bitcoin investors are growing increasingly suspicious about the dealings between Coinbase, America’s leading crypto exchange, and BlackRock, the world’s largest asset manager. Despite the approval of new Bitcoin ETFs driving the price of BTC to record highs in March, investors believe it should be even higher considering the influx of capital. Concerns have arisen that Coinbase may not be purchasing the actual Bitcoin required by these funds, instead issuing what critics call “IOUs” or “paper Bitcoin.” Uncovering the Truth Behind Coinbase and BlackRock: Are Bitcoin Transactions Above Board? Bitcoin ETFs and Market Reactions As new spot Bitcoin ETFs were approved in the U.S., the cryptocurrency market saw a significant surge, with Bitcoin prices hitting new all-time highs in March. This development led to billions of dollars flowing into the market, causing confusion among Bitcoin investors who expected higher price spikes. Coinbase, the custodian for many Bitcoin ETFs including those by BlackRock, has come under scrutiny. Critics allege that the exchange might not be buying the physical Bitcoin to back these ETFs, instead issuing “paper Bitcoin” or IOUs. BlackRock’s ETF Amendment and Public Reaction The rumors regarding Coinbase’s actions gained traction, culminating in Coinbase CEO Brian Armstrong addressing the issue on X, formerly known as Twitter. He reassured investors that all ETF transactions are settled on-chain. Shortly after, BlackRock amended its ETF registration with the SEC to require Coinbase to release Bitcoin within 12 hours of notice when customers buy shares of its Bitcoin ETF. This update was seen by some as validation of their concerns, although Bloomberg ETF analyst Eric Balchunas dismissed the speculation as unfounded and illegal under current regulations. Examining the Skepticism and Trust Issues Skeptical investors demand greater transparency from Coinbase and BlackRock, seeking on-chain receipts to verify transactions. The mistrust dates back to May when pseudonymous…
The post Bitcoin Skeptics Question Coinbase and BlackRock ETF Deal Amid Price Surge appeared on BitcoinEthereumNews.com.
Bitcoin investors are growing increasingly suspicious about the dealings between Coinbase, America’s leading crypto exchange, and BlackRock, the world’s largest asset manager. Despite the approval of new Bitcoin ETFs driving the price of BTC to record highs in March, investors believe it should be even higher considering the influx of capital. Concerns have arisen that Coinbase may not be purchasing the actual Bitcoin required by these funds, instead issuing what critics call “IOUs” or “paper Bitcoin.” Uncovering the Truth Behind Coinbase and BlackRock: Are Bitcoin Transactions Above Board? Bitcoin ETFs and Market Reactions As new spot Bitcoin ETFs were approved in the U.S., the cryptocurrency market saw a significant surge, with Bitcoin prices hitting new all-time highs in March. This development led to billions of dollars flowing into the market, causing confusion among Bitcoin investors who expected higher price spikes. Coinbase, the custodian for many Bitcoin ETFs including those by BlackRock, has come under scrutiny. Critics allege that the exchange might not be buying the physical Bitcoin to back these ETFs, instead issuing “paper Bitcoin” or IOUs. BlackRock’s ETF Amendment and Public Reaction The rumors regarding Coinbase’s actions gained traction, culminating in Coinbase CEO Brian Armstrong addressing the issue on X, formerly known as Twitter. He reassured investors that all ETF transactions are settled on-chain. Shortly after, BlackRock amended its ETF registration with the SEC to require Coinbase to release Bitcoin within 12 hours of notice when customers buy shares of its Bitcoin ETF. This update was seen by some as validation of their concerns, although Bloomberg ETF analyst Eric Balchunas dismissed the speculation as unfounded and illegal under current regulations. Examining the Skepticism and Trust Issues Skeptical investors demand greater transparency from Coinbase and BlackRock, seeking on-chain receipts to verify transactions. The mistrust dates back to May when pseudonymous…
What's Your Reaction?
