Coinbase and Blackrock partners to establish a Bitcoin ETF. The partnership might become the panacea needed for Bitcoin ETF amid rejections and also impact the value of cryptocurrencies for good.
What influences the value of Bitcoin and other cryptocurrencies remain a debate with different hypothesis given as the reason for the rise and fall of crypto prices. The market has been on the bearish trend from its highest of almost $20,000 since the beginning of the year.
The market maintains a little stability and accumulating some gains since the end of August, only for the bulls to take over, with the market seeing a 15% loss in value on September 5. Instrumental to the loss is the news of Goldman Sachs decision to shelve aside its plans for a cryptocurrency trading platform. This affected all other cryptocurrencies.
The hope of its rise after a long period of bearish trend has mostly alluded to the need for a Bitcoin ETF. This has seen ten rejections altogether by the U.S. SEC. While many enthusiasts already started to believe that Bitcoin ETF is no longer needed to see prices of cryptocurrencies rise to their peaks once again, the impact of the Goldman Sachs news shows the role of institutional fund and acceptance will also play a major role in the market seeing a bullish trend.
Hermann Finnbjörnsson recently shared his opinion on the Institutional acceptance and fund in impacting the bullish trend of bitcoin. He stated that the expected announcement of Bitcoin ETF approval of ICE’s application would impact the price of Bitcoin to rise to $10,000 by November 2018.
The positive news from the U.S. SEC on its announcement to be made at the end of this month and also its review of the rejected Bitcoin ETFs might bring to pass the expectation of the bullish trend.
Coinbase And Blackrock Plan For Partnership
While there have been rejections, the hope of a rise still hangs on the expectation of the SEC’s announcement, like Hermann opined of the need for an institutional role, giant exchange Coinbase plans to bring the largest asset manager in the world, Blackrock, into Bitcoin ETF.
The detail of this partnership is not yet revealed, but Coinbase has been in talks with the blockchain division of the Blackrock on how the two firms could bring a Bitcoin ETF to reality.
The plans by the two firm could finally bring fruition to the expectations of the cryptocurrency community on Bitcoin ETF.