BlackRock (NYSE: BLK), the largest asset management firm on the globe, filed for a spot Bitcoin (BTC) exchange-traded fund (ETF) on Thursday, June 15. If approved by the US regulators, the move will allow investors to easily gain exposure to BTC through one of the largest traditional finance (TradFi) companies in the US.
The reports of BlackRock’s filing sparked a heated debate on social media over whether the asset manager’s proposal, which comes amid an intense regulatory crackdown on the digital assets space, should be approved or not.
Notably, the response from the crypto community was mixed, but many appear to have endorsed the move that could have a profound impact on the digital asset market. Cardano (ADA) founder Charles Hoskinson weighed in on the debate on Twitter, lashing out at Bitcoin and crypto proponents who are in support of BlackRock launching a spot BTC ETF.
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Bitcoiners defending Blackrock is all you need to know about their ethics, mental state, and greed https://t.co/FNjBJXE7km
— Charles Hoskinson (@IOHK_Charles) June 15, 2023
He added in a response to one user:
“I’m old enough to remember Mike Hern and Gavin being driven out. I’m also old enough to remember Jimmy Song pushing for the US government to ban all crypto except Bitcoin. Sorry maximalists are fanatics that want to harm us all.”
Operation Choke Point 2.0
Similarly, in a separate tweet, Reflexivity Research’s Will Clemente said that if BlackRock’s proposal gets a nod from the regulators, “it is undeniable that Operation Chokepoint 2.0 was orchestrated to drive out crypto native companies and bring in large traditional firms that are buddy-buddy with the US govt to try and control Bitcoin/crypto.”
“Operation Choke Point 2.0,” refers to the alleged joint efforts by the US government to push the crypto industry out of the US banking sector.
How it started: How it's going: pic.twitter.com/ZnZcsBfdOt
— Documenting ₿itcoin 📄 (@DocumentingBTC) June 15, 2023
Why is part of the crypto community furious with BlackRock potentially entering the crypto space?
BlackRock’s filing for a Bitcoin ETF comes amid a period of growing uncertainty in the crypto industry, as the US regulators double down on the sector.
Last week, the US Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, accusing the leading cryptocurrency exchanges of multiple misconducts and violations.
Many of those in the crypto community who have voiced support for BlackRock’s proposal are referred to as “Bitcoin maxis,” short of maximalists, referring to a group of investors who think that Bitcoin is the only necessary cryptocurrency while other digital assets and altcoins are not worth caring about.
On the flip side, other crypto enthusiasts are not as happy with the latest developments as many altcoins and crypto firms have come under extreme scrutiny in recent months, and in the meantime, BlackRock, one of the biggest TradFi players, could be allowed to foray into the crypto space.
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Featured image via Messari YouTube
