Decoding Blackrock’s Bitcoin Influence: Mining Monopoly and ETF Secrets

Because the world was glued to the information of the Securities and Change Fee (SEC) delaying the approval of six Bitcoin spot ETFs, a number of important developments had been quietly unfolding behind the scenes. Occasions that might arguably sign a possible orchestrated transfer by Blackrock, the world’s largest asset supervisor, within the Bitcoin ecosystem.

Blackrock’s Mining Monopoly

Blackrock has secured majority shareholding in 4 out of the 5 largest Bitcoin miners by market capitalization. The stakes are:

Although Bitcoin shouldn’t be a Proof of Stake (POS) cryptocurrency, making Blackrock’s affect seemingly much less dangerous, there’s extra to this than meets the attention.

Bitcoin mining is a major determinant of its governance and future adjustments. Blackrock’s possession in these main mining corporations may, hypothetically, provide a lever to affect Bitcoin’s community choices, ought to the asset supervisor choose to exert its affect.

Including gasoline to the fireplace is the truth that the 2 largest Bitcoin mining swimming pools now require their customers to undergo the Know Your Buyer (KYC) course of. KYC, beforehand a requisite just for regulated exchanges, now extends its tentacles into the mining realm. This compliance shift may cut back the decentralization ethos that Bitcoin has held since its inception.

Why it Issues

The infusion of KYC into mining swimming pools may doubtlessly permit corporations like Blackrock to entry important quantities of knowledge associated to Bitcoin transactions. That is an alarming development given the rising institutionalization of Bitcoin mining.

Let’s not neglect that the SEC has conveniently delayed its choice on six Bitcoin spot ETFs. Among the many candidates? You guessed it—Blackrock. The opposite corporations dealing with delays embrace Invesco Galaxy, WisdomTree, Valkyrie, Bitwise, and Constancy.

The delays increase eyebrows, not due to the delay itself—which is kind of typical of the SEC—however because of the simultaneous backdoor strikes made by Blackrock. Is the asset supervisor utilizing this as a smoke display screen for its actions within the mining area?

Blackrock’s Mysterious ETF Wording

On Web page 24 of Blackrock’s unique Bitcoin ETF submitting, the corporate states that they’re beneath no obligation to “select probably the most financial chain within the occasion of a Bitcoin onerous fork.”

Why wouldn’t Blackrock decide to choosing probably the most useful Bitcoin fork? May they be planning to create a tough fork themselves, nudging their traders onto an uneconomic chain? 

Whereas we’re not making any assertions about Blackrock’s intentions, we can’t ignore the likelihood that they may be subtly laying the groundwork for one thing extra intensive!