BlackRock's Strategic Moves in the Bitcoin Ecosystem & Why the ETF has been a long time coming
Week ending: 2023-12-29
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Where are we at with the Bitcoin Spot ETF on the New York Stock Exchange/NASDAQ?
By now you’ve heard the craze about the Bitcoin Spot ETF being passed sometime in the near future and you may think it is about time that the NASDAQ had a Bitcoin Spot ETF. Currently, eight countries have approved a Bitcoin Spot ETF: Canada, Germany, Brazil, Australia, Jersey, Switzerland, Liechtenstein, and Guernsey. It is rumored that the BlackRock Spot Bitcoin ETF is going to raise a seed of $10 million, ten times more than the original $100k rumored in October. The demand is there and the largest asset manager in the world knows it.
We all hear how BlackRock is the largest asset manager in the world, but how big are they? As of June 2023, BlackRocks owns $9.2 trillion in assets which is nearly have of the M2 money supply of 20.7 trillion. That means BlackRock nearly has the coveted 51% attack on the world’s global reserve money supply and everyone is worried about the 51% attack on Bitcoin? C’mon.
Have there been signs of BlackRock wanting to get into Bitcoin?
The short answer is yes. But I’ll give you the slightly longer answer to paint the picture as to why BlackRock has been preparing to launch a Spot Bitcoin ETF for some time. Riot Blockchain is the largest publicly traded Bitcoin miner and BlackRock recently increased its percentage of ownership to 5.65%. Marathon Digital is another large publicly traded miner and BlackRock increased its holdings in MARA to 5.30%. BlackRock also owns large stake in CIFR, WULF, and CLSK. Now why would BlackRock hold Bitcoin miners if BlackRock was not bullish on Bitcoin?
Oh wait, there’s more. BlackRock owns 8.1% of MicroStrategy which famously continues to stack Bitcoin every chance Michael Saylor gets. For reference, MicroStrategy owns 174,530 Bitcoin equating to ~$7.62 Trillion. MicroStrategy is the largest holder of Bitcoin of any publicly traded company and BlackRock owns a significant share.
BlackRock has been in the Bitcoin space for quite sometime but it has been waiting for a time to strike on the Spot ETF. It appears its not a matter of if, but a matter of when this will occur. The largest asset manager in the world beat you to Bitcoin with a significant amount of regulation, and all you had to do was read a book. What are you waiting for?
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Hope everyone had a Merry Christmas and a Happy New Year!
Brandon
Disclosure: The authors of this writing hold positions in cryptocurrency mentioned in this article. That cryptocurrency is Bitcoin. The article was written by Brandon Keys and occasionally a guest writer; it expresses the author's own opinions. They are not receiving compensation for it. The information presented in this article is for informational purposes only and in no way should be construed as financial advice or recommendation to buy or sell any stock or cryptocurrency. None of the authors of this article are financial advisors. I encourage all readers to do further research and do your own due diligence before making any investments.