Blackrock CEO Larry Fink called crypto an index for money laundering.
Today, it filed for the Bitcoin ETF with a track record of 99.9% success rate.
I’ll analyze both bullish and conspiracy theories for what it means when up to $10b AUM buys up $BTC 🧵
BlackRock, the world's largest investment manager with $10T in AUM, has applied for a Bitcoin ETF with the SEC.
Summarizing the detailed $BTC ETF S-1 form of 100 pages into 11 lines:
Paying attention to point 5. The near term impact is that we’ll see an influx of funds flow from Blackrock into $BTC, if this gets passed. And if approved we can expect some bullish moves.
This time, with BlackRock's application, it could be different. Of the 576 ETF applications filed, 575 were approved, a 99.86% success rate.
It goes to show Blackrocks’ influence and track record.
They aim to partner with Coinbase for the ETF, which would track the price of Bitcoin.
Big players are still interested in the crypto opportunity despite regulatory challenges. Fidelity just entered the room along with what Blackrock did.
However, The SEC has a tough stance on approving Bitcoin Spot ETF applications, and they have rejected numerous proposals in the past.
Previous attempts to create a Bitcoin ETF in the past, including those by Bitwise, Ark Invest and Grayscale did not go well.
The main roadblocks cited are concerns about market manipulation and fraud, which have raised significant challenges in getting the applications approved.
The SEC's Chair, Gary Gensler, acknowledges Bitcoin as a commodity, despite the agency's skepticism towards the industry. And guess what? BlackRock decides to make its move precisely when the SEC takes a negative stance.
Talk about timing! Here comes the conspiracies.
In the SEC crackdown against Binance and Coinbase, we saw that overall crypto sentiment was weak. But at the same time, Blackrock and Fidelity are filing for a Bitcoin ETF despite Gary’s call for Bitcoin to be a security. Throwing out a food for thought here, if Blackrock could be waiting for such a set up to grab $BTC at some good discount from all these FUD?
On the flipside, with market expectations of Blackrock’s application to historically have good success rates; could this be a chance for “them” to take out more liquidity from the $BTC apeoors? With the expectation that $BTC ETF filing could likely be successful, apeoors ape a big bag and then “they” somehow turn the tables around to catch us all by surprise.
An alternative view to where this Bitcoin ETF to lead us. Some say its not to vahalla.
Seeing it as a double edged sword here. Though this might seem like a good move towards mass adoption and accessibility to invest in $BTC, it becomes dominated by Tradfi. The price of $BTC will be influenced by institutional fund movements and sentiments. This would go against the ethos of decentralization.
Source: https://twitter.com/arndxt_xo/status/1671125789528690688