BlackRock, the largest money manager in the world is entering the Bitcoin market and it will change everything. Just last week they officially applied for a spot Bitcoin ETF, and it has taken the financial market by storm. Most experts are already predicting that their proposal will be accepted, officially making them the first company to have a spot Bitcoin ETF in the US. While most investors are excited about this development as it has long been predicted that a Spot ETF will be the catalyst to finally send the price of Bitcoin over $100k. Especially if it is Blackrock being awarded the ETF.
However, there is something much more important happening behind the scenes that is much more important than the actual spot ETF. This is the real importance of BlackRock entering the Bitcoin market.
It wasn’t that long ago that the CEO of BlackRock publically called Bitcoin “an index of money laundering.” In just a handful of years, his opinion has gone from this, shifting all the way to his company applying for a spot Bitcoin ETF. What caused this change?
We have been living through unprecedented events during the last few years. Covid and the money printing that followed it changed everything. All of a sudden we went from a situation where the dollar reigned supreme, to a scenario where even the head of the US treasury has openly said they could see the dollar not being the world reserve currency in the near future.
The truth is that people who have been holding onto cash for the last few years have only seen their spending power inflated away. The dollar is crumbling and seems to be on its last legs.
BlackRock already knows this.
To understand how important BlackRock entering Bitcoin is, you must first know how powerful they are. The reality is that BlackRock is on equal footing with the government, and arguably even above them. They are a kingmaker with the power to get people elected, replaced, and have laws implemented. What BlackRock wants, they get.
While they are powerful, they are also incredibly well-respected in the financial sector. They don’t do anything impulsively or on a hunch. Every move they make has a purpose, and they never do anything without already knowing the result. They have the best connections and are the best informed.
The timing of BlackRock applying for their Bitcoin ETF is even more interesting. Why would any company apply for an ETF in Bitcoin when the SEC and Gary Gensler have seemingly made the crypto market enemy number one?
The reality is that BlackRock knows something that we don’t. Perhaps they know that Grayscale will win their lawsuit against the SEC. Or maybe they know the Biden administration is going to become more lenient on the crypto market. There is also a chance that BlackRock views Bitcoin as the future, has become a fan of it, and is fed up with the SEC’s recent regulations against it. They know how important this market will be in the future, and that the US can’t afford to push this industry overseas.
By applying for a Spot Bitcoin ETF they have essentially told the SEC and Gary Gensler to stop what they’ve been doing. And now the real games will begin.
BlackRock’s Spot Bitcoin ETF being approved will be an incredibly bullish time for the market that will likely ignite the next bull run. But there is something happening behind the scenes that we all need to be paying attention to.
How about you? What do you think BlackRock’s real motive is?
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