Coinbase Adds New Memecoin as BTC ETF Milestone Approaches; New Cash Redemption Model Mandated for BTC ETF Applicants

By: Eva Baxter

Crypto trading platform Coinbase recently added a new memecoin, Bonk (BONK), to its list of tradable assets concurrent with its involvement in institutional Bitcoin ETF custody with BlackRock. In addition to catering to retail investors through the addition of tokens such as BONK, Coinbase is also involved in supporting institutional activities such as proposed Bitcoin ETFs.

Adding to the developments around Bitcoin ETFs, reports indicate the US Securities and Exchange Commission (SEC) has implemented a mandatory 'Cash Redemption Model' for all Bitcoin Spot Exchange-Traded Fund (ETF) applicants. This mandates fund creators to deposit funds in the ETF equivalent to the net asset value of the creation units to be created, with the fund subsequently purchasing the underlying assets (in this case, Bitcoin) using this deposited money. Companies like Invesco are allegedly adopting this cash creation amendment for their ETFs.

The combined news from Coinbase and the SEC highlight an interesting evolution in the crypto market, with an increased integration with traditional financial structures and a move towards regulatory compliance on one hand, while on the other, catering to a wide audience interested in various aspects of the crypto space, including memecoins.