Poll: BlackRock Bitcoin ETF – When the Wolf Invades the Henhouse

A chilling shadow looms over the realm of cryptocurrency as BlackRock, the colossal asset manager, sets its sights on a bitcoin ETF. The mere thought of institutional giants entering the domain of BTC sends shivers down the spines of those who once fought valiantly against the corrupt clutches of the fiat monetary system, fearing that history is doomed to repeat itself, with the wealthy elites reaping the spoils.

The timing of BlackRock’s ETF application couldn’t be more enigmatic, coinciding with a precarious juncture in cryptocurrency’s regulatory saga. While the US Securities and Exchange Commission (SEC) relentlessly pursues Coinbase for alleged securities violations, BlackRock audaciously seeks the SEC’s blessing for a spot bitcoin ETF, in cahoots with none other than Coinbase itself, serving as its custodial partner.

Unsurprisingly, BlackRock’s choice to collaborate with Coinbase is rooted in a long-standing strategic partnership. However, the entrance of archaic wealth into the uncharted territory of bitcoin raises a crimson flag within the community, signaling impending danger.

Mark Yusko, in a recent heart-pounding episode of the On the Margin podcast, gives voice to the fears that grip the hearts of many, as they contemplate surrendering the keys—both symbolic and cryptographic—to these formidable institutions. The implications of such a power transfer are as foreboding as they are palpable.

Despite the veneer of bullishness that surrounds the arrival of large-scale, heavily regulated investment in bitcoin, not everyone greets this development with unbridled enthusiasm. A sense of trepidation courses through the community, as whispers of a potential hostile takeover grow louder.

The founder of Morgan Creek Capital Management raises an alarm, pointing to Xapo, the institutional-scale crypto custody tool acquired by Coinbase in 2019, as a pawn in the impending regulatory chess match.

“What if,” he asks, BlackRock can “take over this storage unit?”

In possession of a substantial portion of America’s crypto assets, BlackRock could wield an immense power. Should regulators decide to clamp down on Coinbase, deeming it an “unlicensed casino” in the eyes of the SEC, they could effortlessly hand over the coveted Xapo unit to BlackRock, cementing their dominance over the realm.

The clash of titans is imminent, and the fate of the bitcoin universe hangs in the balance. Will the wolf successfully infiltrate the henhouse, leaving destruction and chaos in its wake? Only time will reveal the answer, as the community braces itself for the storm that lies ahead.