Is Blackrock about to trigger the next bull run? (Or are we getting our hopes up?)

TL;DR

• Bitcoin spot ETFs do not yet exist in the US And it’s not for lack of trying – Gemini and Grayscale have both tried to get blockchain ETFs approved.

• Now rumor has it that BlackRock, a company with $9.5 TRILLION under management, is trying to launch a US Bitcoin ETF.

• If you are a Bitcoin holder, this is a big problem! Even an allocation of 1-2% of BlackRock’s total funds can have a HUGE impact on BTC price.

• That said, a 1-2% allocation would also result in BlackRock owning ~20% of all existing Bitcoin, at current prices. (This allows BlackRock to hoard all available coins).

Full story

Have you ever befriended someone who owns a boat?

It is awesome! You enjoy all the benefits of owning it, without management and maintenance.

That’s pretty much how Exchange Traded Funds (ETFs) work.

The fund buys a number of ‘things’ – let’s say Bitcoin – after which investors can buy shares in the fund.

(So ​​in the end they own Bitcoin by proxy).

The advantage is that the ETF shareholders don’t have to figure out how/where/when to buy/sell/store the Bitcoin.

(The fund managers do all that for them).

The only problem with this example is:

This kind of Bitcoin ETF does not exist in the US.

And it’s not for lack of trying – Gemini and Grayscale have both tried to get blockchain ETFs approved by the SEC, but neither have found success.

Now rumor has it that BlackRock, a company with $9.5 TRILLION under management, is trying to launch a US Bitcoin ETF.

…okay, who cares?

If you are a Bitcoin holder, this is a big problem!

Even an allocation of 1-2% of BlackRock’s total funds can have a HUGE impact on BTC price.

…that said, a 1-2% allocation would also result in BlackRock owning ~20% of all Bitcoin in existence, at current prices.

The advantage: Bitcoin could rise significantly. The disadvantage: Bitcoin could rise significantly, and most people would no longer be worth owning a meaningful amount of BTC.

(This allows BlackRock to hoard all available coins and more or less own the market).

Anyway, a BTC spot ETF in the US would be great news for Bitcoin!