BlackRock Issues Major Warning
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November 14, 2023 10:13 pm
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Financial giant BlackRock has issued a warning regarding Bitcoin ETFs and systemic risks caused by stablecoins.
The world’s largest hedge fund claimed that large fluctuations in the price of algorithmic stablecoins and de-pegging events pose risks to both the price and regulatory approval of a Bitcoin ETF.
Indeed, we have seen many stablecoins lose their dollar pegs and then plummet in price such as USDC and DAI.
However, some doubt the sincerity and motivation behind such a statement, noting that BlackRock’s entire financial empire is dependent upon a steady stream of fiat money printing and reliance on the dominance of the U.S. dollar.
Borovik.ETH explained: “BlackRock says stablecoins pose a risk to Bitcoin. Here’s why: BlackRock’s empire RELIES on the DOLLAR. They want to control the market, meaning they want a CBDC to take over. Their ETFs will send us higher, but they are not doing this for the good of crypto.”
BlackRock says stablecoins pose a risk to Bitcoin
Here’s why:
BlackRocks empire RELIES on the DOLLAR
They want to control the market, meaning they want a CBDC to take over
Their ETFs will send us higher, but they are not doing this for the good of crypto pic.twitter.com/abEd699Cft
— borovik.eth (@3orovik) November 14, 2023
🚨🚨BREAKING NEWS – BITCOIN BELOW $35k
Reason 👇👇
BlackRock suggests that the stablecoins $USDT and $USDC may present risks to the approval of a Bitcoin Spot ETF. Keep an eye on it! pic.twitter.com/UVFvMvliNf
— Crypto Aman (@cryptoamanclub) November 14, 2023
Bitcoinist highlighted one such de-pegging event:
Additionally, on March 10, 2023, USDC experienced a deviation from its $1.00 peg when it was revealed that a portion of its reserves had been held at Silicon Valley Bank after it went into the Federal Deposit Insurance Corporation (FDIC) receivership. This incident raised concerns about the stability and reliability of stablecoins.
Financial expert Gabor Gurbacs had this to say: “Regarding BlackRock’s disclosure of stablecoins posing risks to Bitcoin. ETF issuers do list all risks that they can think of for disclosure. The U.S. Dollar itself and banking availability are risks and so are electric outages and natural disasters. Not much to read into IMO.”
Regulators also flagged potential risks around a number of digital asset market structure matters (including stablecoins) many years ago. As a result, of course ETF issuers will do their best to disclose any potential risk. This is standard process and prudent practice.
— Gabor Gurbacs (@gaborgurbacs) November 14, 2023
Statements like this without a link to filings and appropriate context on process & standards is just sensationalism. There is a plethora of other risks disclosed on page 16 to 60 of the BlackRock filing (40+ pages!). Read: https://t.co/uocZ7TO9Zo https://t.co/FXZ8gRSlbu
— Gabor Gurbacs (@gaborgurbacs) November 14, 2023
Investing.Com confirmed:
BlackRock has concluded that such indirect exposure to stablecoins could pose significant risks to investors in its Bitcoin ETF due to potential volatility, operational difficulties, possible manipulative practices, and regulatory challenges.
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