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James Carter

June 24, 2023

Crypto Community Divided over BlackRock’s Recent Bitcoin ETF Application

Crypto Community Divided over BlackRock, one of the world’s largest asset management firms, in the cryptocurrency space. BlackRock’s entry into the crypto market has sparked a range of opinions and debates within the community.

On one side, some members of the crypto community view BlackRock’s involvement as a significant validation of cryptocurrencies. They see it as a positive development that could bring mainstream acceptance and institutional adoption to the crypto industry. Supporters believe that BlackRock’s entry may lead to increased liquidity, market stability, and overall growth of the cryptocurrency market.

Recent filing of an application by asset management firm BlackRock to start a Bitcoin exchange-traded fund has sparked a controversy. Members of community have expressed a range of sentiments, including both excitement and fear.

Crypto Community Divided over BlackRock

The decision of the largest asset manager in the world to enter the cryptocurrency market has been interpreted by many as a substantial confirmation of the industry as a whole, particularly following a stormy period during which there were numerous scandals and bankruptcies.

However, some members of the cryptocurrency community have already begun to raise caution flags about the possibility of BlackRock entering the field. These members point out that the old Wall Street titans are most likely looking out for themselves rather than crypto-native companies and customers.

Are traditional financial institutions gaining more influence over cryptocurrency?

Critics believe that the filing that BlackRock has made could be a precursor to a larger power shift in the cryptocurrency ecosystem that would benefit traditional financial institutions.

Nic Carter, a well-known Bitcoiner and venture investor, is one of the people who has dropped hints about this possibility. On Twitter, he speculated that the SEC may have “guided” BlackRock to apply for an ETF “now that crypto-native firms have been de-fanged.” Other others have also dropped hints about this possibility.

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This sentiment, which is shared by many members of the community, was reinforced by the recent opening of EDX Markets. Cryptocurrency exchange sponsored by key Wall Street firms such as Citadel Securities, Fidelity, and Charles Schwab. As well as renewed ETF registrations from companies such as Valkyrie Funds. This sentiment is shared by many members of the community.

According to a recent story published by the business news outlet Insider, BlackRock has long demonstrated an interest in the cryptocurrency field, and the company currently has close to a dozen executives that are focused on the industry.

According to report, skeptics have voiced worries regarding the potential violation of basic crypto concepts such as privacy and decentralization. The post also said the engagement of major financial firms is considered a danger to the disruptive nature of cryptocurrency.

A similar viewpoint was expressed in an article published by Insider, which compared the admission of traditional financial institutions into the cryptocurrency market to “letting the fox into the hen house.”

“Despite what certain executives at financial companies might say in public, the industry is all about winning for keeps. Not true that a rising tide lifts all boats.’ The phrase “burn the boats” was brought to the readers’.