Investor Concerns Drive BlackRock’s Demand for Faster Coinbase Withdrawals
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
In response to mounting investor concerns over the security and transparency of Bitcoin exchange-traded funds (ETFs), BlackRock has amended its agreement with Coinbase, demanding that the crypto custodian process Bitcoin withdrawals within 12 hours.
This move comes as the world’s largest asset manager attempts to address fears over Coinbase’s on-chain settlement practices. It focuses particularly on proof of reserve transparency.
On September 16, BlackRock filed an amendment to the Securities and Exchange Commission (SEC), outlining new terms for Bitcoin withdrawals related to its ETF products.
The amendment mandates that Coinbase, the custodian for BlackRock’s ETF assets, process Bitcoin withdrawals to a public blockchain address within 12 hours of receiving instructions from clients or authorized representatives.
The goal is to reassure investors that their assets are being appropriately managed and that there is no undue delay in accessing Bitcoin holdings.
In the filing, BlackRock emphasized,
“Subject to confirmation of the foregoing required minimum balance, Coinbase Custody shall process a withdrawal of Digital Assets from the Custodial Account to a public blockchain address within 12 hours of obtaining an instruction from Client or Client’s Authorized Representatives.”
The demand for increased transparency and faster withdrawals was catalyzed by widespread speculation that Coinbase was potentially purchasing “paper BTC” or Bitcoin IOUs on behalf of Bitcoin ETF issuers.
This rumor, combined with Bitcoin’s stagnating price over
Read more on cryptonews.com
