**BlackRock Responds to Concerns Over Bitcoin Allegations Related to Coinbase: Insights from Bloomberg Analyst**
*Author: Mete Demiralp*
*Date: 24.09.2024 – 07:57*
*Update: Just Now*
The leading asset management firm, BlackRock, has reportedly revised its Bitcoin custody protocols in collaboration with Coinbase. The new requirement mandates that Coinbase deposit Bitcoin directly on-chain within a 12-hour timeframe following instructions from BlackRock.
This development arises amid worries that BlackRock’s Bitcoin exchange-traded funds (ETFs) might be trading in “paper BTC” instead of actual cryptocurrencies. Bloomberg ETF analyst Eric Balchunas provided clarity on the situation, noting that BlackRock implements rigorous measures to maintain transparency and ensure the integrity of its asset management. According to Balchunas, BlackRock operates its own blockchain node and conducts nightly withdrawals of Bitcoin from its wallet addresses on Coinbase Prime. This routine ensures the authentication of the Bitcoin held by BlackRock’s proposed Bitcoin ETF, the iShares Bitcoin Trust (IBIT).
In related news, Balchunas highlighted that BlackRock is prepared to share verified balances with institutional clients upon request, although it avoids making this data publicly accessible to prevent an influx of unsolicited inquiries regarding sanctioned Bitcoin or NFTs. He emphasized that BlackRock’s vast experience managing over 500 ETFs in partnership with reputable custodians instills confidence in investors, mitigating concerns about potential fraudulent activities reminiscent of the FTX collapse under Sam Bankman-Fried.
*Note: This article is not intended as investment advice.*
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