“Paper Bitcoin” claims move BlackRock: Demand for change to Coinbase

The allegations that Coinbase, which spread on social media last week, did not hold real Bitcoin on behalf of BlackRock, do not seem to convince BlackRock despite the environment of trust provided. The world's largest asset manager requested a change to the ETF/BTC retention agreement with Coinbase yesterday evening. If the change is approved, Coinbase will have to make the Bitcoin withdrawals requested by BlackRock to an open address from now on. Transactions will also need to be completed within 12 hours.

BlackRock, which is the largest in the world in this sense with more than 10 trillion dollars in assets, has shown once again how much it cares about customer trust. BlackRock took an important step after the allegations that "Coinbase does not hold real BTC for BlackRock" last week.

The company changed its ETF bearding agreement with Coinbase. According to BlackRock's new request, Coinbase will have to complete the withdrawals within 12 hours from now on. The shootings will be made through a clear address to avoid discussion.

BlackRock's request included the following statements:

“Coinbase Custody (*Custody) will ensure that digital assets are withdrawn from the custody account to an open blockchain address within 12 hours of receiving an order from the client or the client's authorized representative”

What happened?

As it will be remembered, last week, allegations that Coinbase held debt documents (documents) also known as IOU on behalf of BlackRock's IBIT ETF instead of real BTC were on social media. The claim that "Coinbase is not real, paper holds Bitcoin" was also denied and refuted by many experts, especially Coinbase executives. However, BlackRock has also shown that it will not take any risks with this move.

In both Bitcoin and Ether ETFs, Coinbase, which runs the custody services of the majority of the issuing companies, has long seen “proof of reserve” pressure from the public.