BlackRock Issues Major Warning

November 14, 2023 10:13 pm Comments

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.”

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.”

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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