BlackRock and Coinbase Amended Custody Agreement for iShares Bitcoin Trust ETF
BlackRock, the world’s largest asset manager, has recently announced an amended custody agreement with Coinbase for its iShares Bitcoin Trust ETF. The agreement aims to improve withdrawal processes and asset management during unsettled trades, reflecting BlackRock’s efforts to enhance the operational framework of its iShares Bitcoin Trust ETF and improve liquidity and access for institutional investors.
Shortened Withdrawal Processing Time
One of the key modifications in the amended custody agreement is the shortened Coinbase Custody withdrawal processing time. This means that investors can now withdraw their assets more quickly, providing them with greater flexibility and control over their investments.
Withdrawal from Vault Balance or Trading Balance
The amended agreement also permits the Trust to withdraw bitcoin from either the Vault Balance or the Trading Balance to public blockchain addresses. However, this is subject to the condition that an amount equivalent to the unpaid Trade Credit remains in the aggregate balances after such withdrawal.
This modification provides investors with greater flexibility in managing their assets, allowing them to withdraw their bitcoin from either the Vault Balance or the Trading Balance, depending on their needs and preferences.
Enhancing the Operational Framework of iShares Bitcoin Trust ETF
BlackRock’s amended custody agreement with Coinbase reflects its commitment to enhancing the operational framework of its iShares Bitcoin Trust ETF. By improving withdrawal processes and asset management during unsettled trades, BlackRock aims to improve liquidity and access for institutional investors.
The iShares Bitcoin Trust ETF is designed to provide investors with exposure to bitcoin through a traditional investment vehicle. It is listed on the New York Stock Exchange and is available to trade during regular market hours.
Conclusion
The amended custody agreement between BlackRock and Coinbase for the iShares Bitcoin Trust ETF is a significant development in the world of institutional bitcoin investment. By improving withdrawal processes and asset management during unsettled trades, BlackRock aims to enhance the operational framework of its iShares Bitcoin Trust ETF and improve liquidity and access for institutional investors.
With the shortened Coinbase Custody withdrawal processing time and the ability to withdraw bitcoin from either the Vault Balance or the Trading Balance, investors now have greater flexibility and control over their investments. This is a positive development for the institutional bitcoin investment space, and we can expect to see more developments in this area in the coming months and years.
