BlackRock’s Bitcoin ETF Sparks Debate in Crypto Community25. Juni 2023
• BlackRock recently applied to launch a Bitcoin ETF, stirring debate within the crypto community with some viewing it as a validation and others raising concerns.
• Some have suggested that traditional Wall Street giants are looking out for themselves rather than crypto-native companies and users.
• Skeptics have expressed worries about potential compromises of core principles such as privacy and decentralization due to the involvement of major financial firms.
BlackRock’s Bitcoin ETF Application Stirs Debate
Asset management giant BlackRock’s recent application to launch a Bitcoin exchange-traded fund (ETF) has stirred up debates in the crypto community, with mixed reactions from both sides. While many view BlackRock’s move as a significant validation for the industry following its turbulent period, there are also those who are concerned that traditional financial firms may be looking out for themselves instead of crypto-native companies and users.
Impact on Crypto Principles
The involvement of major financial institutions in the crypto space has led to fears over potential compromises of core principles such as privacy and decentralization. The launch of EDX Markets – a crypto exchange backed by prominent Wall Street players – combined with renewed ETF filings from Valkyrie Funds indicate that power over cryptocurrency could be shifting towards traditional finance firms.
Nic Carter’s View
Venture investor Nic Carter suggested on Twitter that the U.S Securities and Exchange Commission could have “guided” BlackRock to apply for an ETF “now that crypto-native firms have been de-fanged” – an opinion shared by many in the community. Business news outlet Insider highlighted how BlackRock already has nearly a dozen executives focused on the sector, but warned readers about how letting traditional finance into cryptocurrency can be likened to “letting the fox in the hen house” due to their self-serving nature.
Blackrock’s Interest in Crypto Space
Business news outlet Insider noted that Blackrock has long shown interest in entering into the cryptospace despite concerns raised by sceptics about potential compromise on core principles such as privacy and decentralisation . Despite this, some within th ecrypto community are still viewing this move by Blacrkock as significant validation forthe industry after its turbulent period .