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• BlackRock’s possible Bitcoin spot ETF raises concerns in the crypto community, due to their control over forks.
• Bitcoin is not a threat to global markets but rather a profitable milking cow for institutional investors.
• The filing of the ETF states that BlackRock will have complete discretion to determine which network should be considered the appropriate network.

Blackrock’s Possible Bitcoin Spot ETF

BlackRock, the largest asset manager globally with $9.1 trillion under its wing, filed for a Bitcoin spot ETF on June 15th. This has raised concerns in the crypto community due to BlackRock’s control over forks and their influence within large financial institutions such as Fidelity Investments (over $4 trillion in AUM). Despite initially calling Bitcoin an “untested asset” with a “very small market”, it has since become a major investment option for institutional investors who could benefit from its expanding adoption and undervalued price.

Discretion Over Forks

The application with the US Securities and Exchange Commission states that in the event of a hard fork of the Bitcoin network, Blackrock will use its sole discretion to determine which peer-to-peer network should be considered as the appropriate network for their purposes. This has caused concern amongst some members of the crypto community who are worried about potential manipulation by powerful institutional players like BlackRock.

Larry Fink & The World Economic Forum

The chief executive of BlackRock, Larry Fink, is widely considered one of the central players in global financial markets and also has strong connections with The World Economic Forum (WEF). In 2019 he joined WEF’s Board of Trustees and his company is now a policy contributor there too. This means that if Larry offers an ETF then clients tend to take it regardless of whether or not they are keen on crypto investments.

Institutional Interest Benefits Crypto

Institutional interest can provide greater exposure for Bitcoin and other cryptos, whilst also providing them with much needed legitimacy within mainstream finance circles – something lacking during its early years as an alternative asset class largely ignored by Wall Street analysts and traditional investors alike. Although there may be some reservations surrounding how much control these big players have over certain aspects such as forks, ultimately institutional interest is likely beneficial for crypto overall due to increased liquidity and investor confidence it brings about through increased visibility within mainstream channels.

Conclusion

Even though many members of the crypto community have raised concerns over potential manipulation by powerful institutionals such as Blackrock when it comes to forks, ultimately this kind of institutional interest can be beneficial overall as it provides added legitimacy within mainstream finance circles as well as increased liquidity/visibility leading to greater investor confidence overall

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