Investment management firm BlackRock has made changes to its custody agreement with cryptocurrency exchange Coinbase to apply to its Bitcoin exchange-traded fund (ETF). The revision came after concerns were raised about Coinbase’s settlement practices, with concerns that it was offering “paper Bitcoin” to the ETF.

BlackRock is now requiring Coinbase to deposit Bitcoin directly on-chain within 12 hours of receiving instructions, according to a new filing with the U.S. Securities and Exchange Commission (SEC). This new requirement is designed to ensure that withdrawals are processed in a timely manner to public blockchain addresses, thereby increasing liquidity and investor access.

BlackRock’s move to demand faster withdrawals from Coinbase highlights the growing importance of transparency and security in the cryptocurrency market. By implementing this change, BlackRock aims to address investor concerns and improve the overall efficiency of its Bitcoin ETF business.

According to Lookonchain monitoring, the net inflow of 10 Bitcoin ETFs today was 1,017 BTC (approximately US$64.31 million), of which Fidelity saw an inflow of 415 BTC and currently holds 177,067 BTC (approximately US$11.2 billion). The net outflows of the 9 Ethereum ETFs were 146 ETH (approximately $385,000), of which Grayscale (ETHE) had an outflow of 117 ETH and currently holds 1,717,725 ETH (approximately $4.55 billion).

Sept 23 Update:

10#BitcoinETFsNetFlow: +1,017 $BTC(+$64.31M#Fidelityinflows 415 $BTC($26.26) and currently holds 177,067 $BTC($11.2B).

9#EthereumETFsNetFlow: -146 $ETH(-$385K)#Grayscale(ETHE) outflows 117 $ETH($310.5K) and currently holds 1,717,725 $ETH($4.55B).… pic.twitter.com/OX64QkLNVZ

— Lookonchain (@lookonchain) September 23, 2024

"BlackRock modifies the custody agreement with Coinbase on Bitcoin ETF, requiring withdrawals to be completed within 12 hours" This article was first published on "Blocker".