November 14, new news about BlackRock drove the web crazy, shortly after the fake news of a possible Spot ETF on Xrp.
In an official document presented by iShares Bitcoin Trust to the SEC, i.e. the fund that will issue BlackRock's Bitcoin Spot ETF shares on the market, the following statement can be read:
"Bitcoin prices may be affected by stablecoins, including Tether and USDC, stablecoin issuers, and their regulatory treatment".
The main risks are:
- liquidity risk: stablecoins may not be able to satisfy the demand for withdrawals in the event of a liquidity crisis;
- credit risk: stablecoins are often backed by credit assets, which could lose value in the event of a financial crisis;
- regulatory risk: stablecoins could be more stringently regulated, which could reduce their liquidity and value.
BlackRock has therefore recommended that the SEC adopt measures to reduce the volatility of stablecoins which include more stringent liquidity, transparency and regulatory requirements.
The position taken by BlackRock is perfectly in line with other financial institutions and with the FED which has always considered stablecoins as a risk to financial stability.
In summary, as was obvious, the Trust will not invest in stablecoins, but (for now) only in Bitcoin which however remains exposed to the risks posed by stablecoins.
The aim is to avoid an implosion like that of UST through restrictive regulations on all stablecoins linked to fiat currencies.
In my opinion, it's reasonable to think that when BlackRock asks for something, the SEC gives it to them.
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