BlackRock has made amendments to its custody agreement with Coinbase, updating procedures for its iShares Bitcoin Trust ETF. The changes aim to improve withdrawal processes and asset management during unsettled trades. The modifications allow for shorter withdrawal processing times and permit the Trust to withdraw bitcoin from either the Vault Balance or the Trading Balance. These adjustments reflect BlackRock's efforts to enhance the operational framework of its Bitcoin Trust ETF and improve liquidity and access for institutional investors. This update comes amid allegations against Coinbase regarding the use of BlackRock's funds to purchase actual bitcoins. However, Bloomberg senior ETF analyst Eric Balchunas refuted these claims, stating that BlackRock would intervene if Coinbase engaged in any fraudulent behavior. Coinbase CEO Brian Armstrong also addressed the allegations, noting that all mints and burns related to the ETFs are settled on-chain and that the firm operates transparently and complies with regulatory standards. The contractual updates may also address regulatory expectations and operational best practices.



Other News from Today