BlackRock, the world’s top fund management firm, has made a significant decision to make its Bitcoin spot ETF more attractive to Bitcoin maximalists. Earlier this year, the SEC approved several Bitcoin spot ETF applications, including BlackRock’s IBIT fund. Since then, BlackRock has become a leading digital asset fund manager, with high trade volumes for its ETF.
In a recent SEC filing, Coinbase Custody updated its Custodial Services Agreement, requiring withdrawals of digital assets to occur within 12 hours of receiving instructions from the Trust or its authorized representatives. This update is aimed at meeting specific balance requirements and ensuring timely transactions.
The amendment to the Custodial Services Agreement is not just about meeting the needs of traders, Coinbase, or BlackRock. It is also about attracting support from Bitcoin maximalists, who have raised concerns about price manipulation in the Bitcoin spot market. Some enthusiasts believe that ETF products have led to losses and price suppression in the market.
Despite these concerns, top executives and supporters of Bitcoin spot ETFs have defended their products, citing factual evidence to refute allegations of price manipulation. However, BlackRock’s latest decision is likely to address these concerns and garner support from critics who want to ensure that Bitcoin’s trade price is not manipulated through financial practices.
Overall, BlackRock’s move is a step towards building trust and transparency in the Bitcoin market, reassuring investors and stakeholders that measures are in place to prevent any form of manipulation. This decision is crucial in maintaining the integrity of the market and fostering confidence among Bitcoin enthusiasts.