The authority of the world’s third largest Bitcoin wallet has reeled the cryptocurrency community into the throes of uncertainty, with many inclined to believe it resides under the financial giant BlackRock. This speculation pricks up the ears of those monitoring BlackRock’s Bitcoin ETF application that remains in a rather precarious state.
As a considerably significant number of enthusiasts herald this as an affirmative stepping-stone for Bitcoin’s evolutionary journey, leading crypto advocate, Lark Davis, exercises a stringent level of skepticism over this development. Davis, in particular, instructs his audience to be wary of BlackRock’s proposed alliance with Bitcoin, cautioning that the underlying motivations might not necessarily align with the pure, unfettered ethos of the Bitcoin revolution.
To Davis, BlackRock’s relatively colossus $10 trillion arsenal, along with its intricate links with the White House and sturdy history of financing state-level political campaigns, paints a picture of a financial entity that holds an unquestionable hegemony over both Wall Street and Washington. This, he expresses, is a cause for concern.
Nevertheless, the potential ownership of this immense Bitcoin wallet by BlackRock might be of secondary consequence in the grand scheme of things. Davis highlights the firm’s leverage over the political arena, asserting that their influence may very well drip into the crypto world, branding it a “deal with the devil”.
A key fact slipping through the cracks of Davis’s argument is that BlackRock has an indirect hold on over 12,000 Bitcoins via its 8.1% ownership in MicroStrategy. As a matter of fact, BlackRock proudly sits as MicroStrategy’s second-largest shareholder, just a step behind Michael Saylor.
Ethereum’s co-founder Vitalik Buterin echoed similar sentiments back in 2022, expressing delight in the delay of ETF approvals as this would grant the crypto ecosystem ample time to grow and evolve before attracting additional attention.
Seemingly out of sync with these perspectives, Galaxy Digital’s CEO Mike Novogratz suggested that BlackRock’s head, Larry Fink has warmed up to cryptocurrencies. He insists that Fink has been “orange pilled,” indicating an endorsement of cryptocurrencies that was once absent.
In conclusion, amidst the ongoing ambiguity, the question that looms large is whether BlackRock will emerge as benefactor or malefactor in the labyrinth that’s cryptocurrencies. Despite skepticism over the institution’s true intentions, it seems the odds favor BlackRock, given their impressive ETF application success rate of 99.8%.
Source: Cryptonews
