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Bitcoin ETF News: BlackRock Demands Withdrawals Within-12-Hour

BlackRock’s new rule for their Bitcoin ETF says all Bitcoin withdrawals must be done within 12 hours. This change has caught a lot of attention in the crypto world.

A big change has happened with how people can get their Bitcoin back. BlackRock, a big company that invests in Bitcoin, has said that people can now get their Bitcoin back in just 12 hours. This is important news for people who invest in Bitcoin.

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The Background of the Amendment: Bitcoin ETF

On September 16th, BlackRock, a big company that invests in Bitcoin, told the government that Coinbase, the company that keeps people’s Bitcoin safe, has to give people their Bitcoin back within 12 hours. This is because people were worried about how Coinbase was taking care of the Bitcoin they had.

The concerns center around the fear that Coinbase may be engaging in practices involving “paper BTC” or IOUs rather than maintaining direct ownership of actual Bitcoin. These practices might lead people to question the actual value of their Bitcoin, which could impact its market price. By establishing a clear time frame for withdrawals, BlackRock aims to reassure investors that they can quickly and directly access their Bitcoins from the blockchain.

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The Response from Coinbase: Bitcoin ETF

Bitcoin ETF: Coinbase is a big company in the United States that helps people keep their Bitcoin and Ether safe. The head of Coinbase, Brian Armstrong, said that they do everything on the blockchain, which is a public record of all cryptocurrency transactions. He also said that people don’t have to worry about anyone messing with their Bitcoin, and that Coinbase is a transparent company.

Armstrong further clarified that the Bitcoin held for these ETFs is legitimate and accounted for, while acknowledging that the company does not disclose all wallet addresses holding these Bitcoins for security reasons. This response is meant to ease investor concerns about the safety of the assets held by Coinbase. It also addresses worries about the integrity of the ETFs that Coinbase manages.

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Bitcoin ETF: What Prompted the Investor Concerns?

Investor apprehensions escalated following Coinbase’s announcement that it might be developing a new product known as “Coinbase BTC” or cbBTC, which is a form of Wrapped Bitcoin (wBTC). Wrapped Bitcoin is a type of token that stands in for Bitcoin on different blockchains, letting people use it in various systems. This has caused some concern about whether Coinbase has enough real Bitcoin to support all the ETFs it handles.

The price of Bitcoin hasn’t changed much in a while, and some people think that Coinbase might be doing something that makes the price look different from what it should be. Investors were worried that if Coinbase wasn’t holding Bitcoin the right way, it could make people think that Bitcoin isn’t a good investment.

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Bitcoin ETF: Are Bitcoin ETF to Blame for the Price Slump?

Bitcoin ETF: People have been blaming different things for the fact that the price of Bitcoin hasn’t changed much. Some people think that the number of Bitcoin funds has something to do with it. But someone named Eric Balchunas says that companies that sell Bitcoin funds shouldn’t be blamed for this.

Instead, Balchunas and others suggest that the real issue lies with native Bitcoin holders who have been cashing out over the long term. If that’s true, then large sell-offs by these holders could really drive down the price. Interestingly, data shows that even though Bitcoin’s price is struggling, ETFs hold billions of dollars in Bitcoin, suggesting that these funds might actually help stabilize the market.

The Implications of the 12-Hour Withdrawal Requirement: Bitcoin ETF

Bitcoin ETF: BlackRock, a big company that invests in Bitcoin, wants people to feel good about investing in their Bitcoin fund. They’ve made a new rule that says people can get their Bitcoin back in just 12 hours. This will help people trust the company and make them feel safer about investing in Bitcoin.

This new rule could make other companies that invest in Bitcoin do the same thing. In a market where people aren’t always sure about what’s going on, it’s important for companies to be clear and honest to make people feel good about investing.

Bitcoin ETF: BlackRock, a big company that invests in Bitcoin, has made a big change that will help people feel better about investing in Bitcoin funds. They’ve said that people can now get their Bitcoin back in just 12 hours, which will help people trust that the Bitcoin in these funds is real and available. Coinbase, the company that keeps people’s Bitcoin safe, has also said that they will be honest and keep good records of people’s Bitcoin, which makes people feel more confident about investing.

As the cryptocurrency landscape continues to develop, measures like these are crucial in building a robust and trustworthy investment environment. By creating new rules for withdrawal transparency, BlackRock and Coinbase are addressing current concerns and also opening the door for future improvements in how digital assets are handled and viewed. This change could set a standard for other ETF issuers, possibly changing what investors expect and how things work in the larger cryptocurrency investment world. An easy method is to follow CoinMozo X (Twitter) social media handle.

Also Read: Michael Saylor Could Ignite Bitcoin’s Next Bull Run to $70K with $489M MicroStrategy Investment!

Disclaimer

The content presented here may express the author’s personal opinions and is subject to change based on market conditions. It is crucial to conduct your own market research before investing in any cryptocurrency. Neither the author nor this publication assumes any responsibility for any financial losses you may incur.