BlackRock Requires 12-Hour Withdrawals for Bitcoin ETF Amid Coinbase cbBTC Transparency Concerns: Cointelegraph

Sep 23, 2024, 01:41 PM

BlackRock has amended its Bitcoin ETF, $IBIT, custody agreement with Coinbase to require 12-hour withdrawals. The modification, detailed in an SEC filing, updates Section 2.1 of the Custodial Services Agreement. This move aims to enhance operational frameworks and improve liquidity amid recent allegations. According to Cointelegraph, Coinbase must now process a withdrawal of digital assets to a public blockchain within 12 hours. Concerns have been raised about Coinbase's transparency regarding proof of reserves, particularly with its cbBTC, which has been criticized for not meeting industry standards.