BlackRock cares, you probably should too


July 17, 2018
All I want is less to do, more time to do it, and more pay for not getting it done.
-Unknown

CoinSheet #212

COIN BULLETIN

BlackRock is evaluating cryptocurrencies

Word on the street is that BlackRock has assembled a working group to look at blockchain technology and cryptocurrencies.

Meaning they're sorta interested in crypto.

This does not mean BlackRock is currently doing any of the following:
  • Buying bitcoin
  • Considering buying bitcoin

With that said...

It could be worth noting (or it could be pure coincidence) that a few weeks after the CBOE files for a Bitcoin ETF, the world's biggest ETF provider decides to assemble a working group to look into blockchain tech and crypto.

You know, because a bitcoin ETF is impossible.

I don't actually know if the dates are actually consistent, these types of stories usually have a ton of re-reporting, but most of that is irrelevant anyways.

It might be bad reporting...Or it could be one of those things where in hindsight we'll all be like "dam, how did we not see this coming."

So like...is the ETF happening?

Dude I don't know, I'm not in the Illuminati yet, stop emailing me.

Lets try to take an objective look at the top 3 reasons why the previous bitcoin ETF was rejected and if those reasons are still relevant today.

(I think) Those reasons are:

1. Lack of overseas regulations
2. Lack of a surveillance-sharing agreement
3. Lack of insurance
Okay, so lack of overseas regulations (specifically, places with high volume exchanges). While we're seeing legislative progress (i.e., Japan, South Korea, Malta), legislation is slow.

The SEC is probably a little faster. Doesn't the SEC have that August 10 deadline?

A lack of a surveillance-sharing agreement.

The purpose of this agreement is so a non-US entity will be able to share relevant information about market trading and market clearing activity + KYC/AML, without being materially impeded by the non-US entity’s laws.

Will this sharing agreement with Gemini be sufficient? (see June 2018 proposal below)
The last thing was a lack of insurance for bitcoin.

The current CBOE proposal states that they have managed to secure insurance for their investors.

This would let investors know that their money is safe.
That last bit about insurance is actually significance.

So in conclusion...

I'd give this ETF about a 25% chance of becoming a thing.

Coinbase is Exploring Cardano, Basic Attention Token, Stellar Lumens, Zcash, and 0x

And in other news, Coinbase is exploring adding coins that I told you they were going to add like 8 months ago.

What else is going on...

  1. Coinbase Says It Has Green Light to List Coins Deemed Securities
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