BlackRock's ETF: A Trojan Horse to Take Over Bitcoin
Are regulators trying to drive out crypto-native companies to pave the way for Blackrock to move the industry?
There is no doubt that the demand for BlackRock's Bitcoin Exchange-Traded Fund (ETFs) - and the flood of buyers that followed - supported the bulls. This could indicate an atmosphere of change in the regulatory environment, they say. It can bring Bitcoin exposure to the public, they cry. Although there may be some truth in these words, we need to go back and look at the bigger picture. We should not be in a world where the mere possibility of a spot Bitcoin ETF materializing in the US sends the market into overdrive. BlackRock's potential surge in Bitcoin price trends should give everyone in the Bitcoin community pause for reflection rather than celebration.
A spot Bitcoin ETF will clearly be an easy way for US pension funds to gain exposure to bitcoin from above, and it is possible that a US-backed ETF could lead to significant price appreciation in the coming years . But what will it do to advance the cause of Bitcoin - to demystify money, empower the cashless, and change the way we use money to interact around the world? Very little, if anything. TradFi Attack
BlackRock's application and the discussion surrounding it has been a reminder of the mistrust between parts of the crypto community and the world of traditional finance.
The timing of BlackRock's foray into Bitcoin ETFs is particularly interesting and has driven conspiracy theorists crazy. Given the Securities and Exchange Commission's lawsuit against Binance and Coinbase, some believe that the company is removing native crypto-assets to pave the way for companies like BlackRock to expand the crypto channel.
Of course, such claims are just baseless speculation. However, they show how deep traditional financial institutions (TradFi) are entering the digital space, as we risk becoming another asset class and neglecting its purpose and true value.
These are the key dates and timeline for the BlackRock Spot Bitcoin ETF— Ξ huf (@hufhaus9) June 26, 2023
This is how I'm positioning over the coming weeks... pic.twitter.com/V1Kwvbh8Rc
As you dig into the details of the BlackRock case, alarm bells start ringing. The filing provides that in the event of a hard fork, BlackRock can "use its discretion to determine which network should be considered a suitable network for the purposes of trust." This can be significant, allowing BlackRock to try to influence the direction of Bitcoin - or at least direct the company's share of capital investment. The massive impact on what is supposed to be a decentralized financial system is obviously a cause for concern in itself, but the biggest issue with ETFs is that investors can't withdraw their Bitcoin. 'below. Owning Bitcoin is where the real value lies. Respect the philosophy of Bitcoin
Let's not forget that Bitcoin was created in direct response to the bailouts and quantitative easing that followed the financial crisis of 2008. Unlike traditional money, Bitcoin has a limited supply, is really rare, and works with a decentralized government. . Fifteen years after the crash, central banks around the world can't stop the habit of printing money, using it as a "get out of jail free" card. Except it's nothing but free. Around the world, ordinary people are working hard to pay as their incomes decline, which is now exacerbated by chronic inflation.
While central banks play Russian roulette with the public's money, Bitcoin's philosophy is to empower people by providing an unlimited supply of money. As an open financial network, Bitcoin has the potential to change the way we interact with money. This could reduce the need for middlemen - perhaps making them obsolete - something that conspirators would say TradFi is well aware of. Bitcoin ETFs seem to defy the philosophy of power. El Salvador - with its strong approach to bitcoin adoption - is said to be more in line with the fundamental goals of bitcoin than any ETF could be. As El Salvador is looking for power and unbanked by the giants that promote Bitcoin ownership, Bitcoin ETF investors will find themselves without any of the value of Bitcoin while filling the pockets of TradFi projects and cementing them situation.
The Owner Instead Of Guessing The Price
Spot Bitcoin ETFs seem to establish a presence in the cryptocurrency ecosystem in the coming years and attract a certain class of investors, but their work should not cover the trajectory of the market. If we only focus on exposing people to price movements without real authority, then we will have missed the point of what can be a flexible financial system. And no, if the law is approved that brokers can invest through ETFs instead of owning them, that's not "consumer protection."
It shows their helplessness. Our company must remain cautious, realizing that the growing participation of ETFs and traditional funds in the cryptosphere can cause risks to the purpose of Bitcoin. Remembering these risks means not to be blinded by the hype, but to remain committed to the original ethos of Bitcoin - a tool to change the global financial system, not just something useful for speculation.