tl;dr
BlackRock, the world's largest asset manager, has filed for an amendment to its Bitcoin ETF (IBIT) with the US Securities and Exchange Commission (SEC). The amendment seeks to ensure that Bitcoin withdrawals from Coinbase, the custodian for IBIT, are processed within 12 hours. This move comes amid i...
BlackRock Files Bitcoin ETF Amendment
- BlackRock aims to amend its high-performing Bitcoin ETF (IBIT) to address concerns and enhance operational frameworks.
- Concerns about Coinbase's custodial practices for Bitcoin ETFs prompt BlackRock's request for Bitcoin withdrawals to be processed within 12 hours.
- Coinbase CEO pushes back on concerns, stating that all ETF mints and burns are ultimately settled on-chain.
- BlackRock's IBIT dominates the Bitcoin ETF market, managing $22.5 billion in on-chain assets and holding over 38% of the market share.
- Coinbase's dominant role as a custodian for multiple Bitcoin and Ethereum ETFs raises concerns about it being a potential single point of failure and a target for attacks.
BlackRock, the world's largest asset manager, has filed for an amendment to its Bitcoin ETF (IBIT) with the US Securities and Exchange Commission (SEC). The amendment seeks to ensure that Bitcoin withdrawals from Coinbase, the custodian for IBIT, are processed within 12 hours. This move comes amid investor concerns about Coinbase's custodial practices and the possibility of using "paper BTC" for ETF issuers. Coinbase CEO Brian Armstrong has defended the platform's practices, stating that all ETF mints and burns are settled on-chain.
BlackRock's amendment aims to address these concerns and enhance operational frameworks while improving liquidity. However, concerns persist about Coinbase's significant role in the crypto spot ETFs market, leading to fears of it being a potential single point of failure or attack. Despite these concerns, Coinbase continues to play a critical role in institutional Bitcoin investment and operates a substantial portion of the US-based BTC spot trading market.
BlackRock Applies For Amendment To The Coinbase Prime Broker Agreement
In a filing with the US Securities and Exchange Commission (SEC) on September 16, BlackRock requested that Bitcoin withdrawals from Coinbase, which acts as custodian for the asset manager’s IBIT, be processed within 12 hours.
This request comes as investors raise concerns about Coinbase’s custodial practices for Bitcoin ETFs. Specifically, investors want Coinbase, as custodian, to provide on-chain proof of Bitcoin purchases for ETFs to ensure transparency. The concerns have arisen due to Bitcoin’s stagnant price performance over the past three months, despite large inflows into Bitcoin ETFs. Some speculate that Coinbase might be using “paper BTC” or Bitcoin IOUs for ETF issuers, potentially contributing to the lackluster price movement.
Amidst the concerns, Coinbase CEO Brian Armstrong pushed back in a bold attempt to counter fear, uncertainty, and doubt (FUD).
BlackRock’s recent move to amend its Bitcoin ETF aims to address these concerns. The modifications suggest the asset manager’s efforts to enhance operational frameworks while improving liquidity. ETF analyst Eric Balchunas also minimized the speculation.
Coinbase As A Potential Single Point Of Attack
Indeed, Bitcoin ETF inflows have been massive since the financial instrument hit markets on January 11. Dune data shows that BlackRock’s IBIT dominates the sector, holding over 38% of the market share and managing $22.5 billion in on-chain assets.
Coinbase plays a dominant role in the crypto spot ETFs market, providing custody services for eight of 11 Bitcoin ETFs and eight of nine Ethereum ETFs. It also offers trading execution and market surveillance services.
It doesn’t bode well that nearly all crypto ETF issuers have the same custodian for all their BTC and ETH. This makes Coinbase a potential single point of failure and that’s scary.
Beyond the latest concerns about possible IOUs to investors, the threat from North Korean hackers also positions Coinbase as a single point of attack should the bad actors target the custodian. Despite these concerns, the platform continues to play a critical role in institutional Bitcoin investment, operating a substantial portion of the US-based BTC spot trading market.
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Technical Analysis Report
Summary:
Based on the analysis of support and resistance levels, along with the RSI and moving averages, the stock is exhibiting a potential bullish breakout. The head and shoulders pattern indicates a strong upward trend. However, it's important to note that market conditions can change rapidly, and there are inherent risks in trading. Past performance is not indicative of future results.
Key Indicators:
- Support and Resistance Levels: Bullish breakout above key resistance level.
- RSI: Showing strong bullish momentum, indicating potential upward movement.
- Moving Averages: Bullish crossover of short-term moving average above long-term moving average.
Conclusion:
While the technical indicators suggest a bullish trend, it's essential to proceed with caution and consider the potential risks involved. Market conditions can be unpredictable, and it's important to stay informed and exercise prudent risk management.
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Emeren Group Ltd, ReneSola Ltd, develops, builds, operates and sells solar energy projects. The company is headquartered in Stamford, Connecticut.
Industry: MANUFACTURING, SEMICONDUCTORS & RELATED DEVICES
Revenue: 115324000
Net Income: None
Earnings Per Share: None
Dividend: -0.31
Shares Outstanding: 1.915
Book Value: -0.163
Market Cap: 103577000
EBITDA: 4.38
Price/Earnings Ratio: -0.924
Price/Book Ratio: -0.112
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After a comprehensive analysis of the stock's price movements, it is evident that it has reached a critical support level, suggesting a potential buying opportunity for investors. The Relative Strength Index (RSI) also indicates that the stock is currently oversold, further supporting the notion of a favorable entry point. Additionally, the moving average convergence divergence (MACD) indicator shows a potential bullish crossover, signaling a possible upward trend in the near future.
On the other hand, the stock has encountered strong resistance at a key level, indicating a potential barrier to further price advancement. The Bollinger Bands also suggest a period of heightened volatility, potentially leading to erratic price swings. Therefore, it is crucial for investors to exercise caution and consider implementing risk management strategies to mitigate potential downsides.
In conclusion, while the technical indicators point towards a possible buying opportunity, it is essential for investors to carefully weigh the risks associated with the current market conditions. The presence of both bullish and bearish signals necessitates a prudent approach, emphasizing the importance of thorough risk assessment and strategic decision-making.
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Compass Inc, Urban Compass, Inc., which is Compass, is a real estate brokerage company. The company is headquartered in New York, New York.
Industry: TECHNOLOGY
Sector: SERVICES-COMPUTER PROGRAMMING SERVICES
Market Cap: 3102255000
Dividend Yield: None
EPS: None
P/E Ratio: -0.48
ROE: 10.68
Current Ratio: -0.0454
Revenue: 5188500000
Debt/Equity: 4.93
Quick Ratio: 0
Price/Book: 0.138
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Interlink Electronics Inc (Ticker: IEL)
Interlink Electronics, Inc. is a technology company based in Irvine, California, specializing in force sensing technologies integrated into sensor-based products and custom sensor system solutions.
Sector: Technology
Industry: Computer Peripheral Equipment
Market Cap: $36.00M
Dividend Yield: N/A
P/E Ratio: N/A
EPS: -0.21
ROE: 1.282
Net Margin: -0.128
Volume: 12,635,000
50-Day Moving Average: $7
200-Day Moving Average: $21.01
Relative Strength Index (RSI): 7 (oversold)
Price Change (1-Year): -0.284