Can BlackRock Truly Control Bitcoin’s Freedom?
In the cryptocurrency world, when big players like BlackRock venture into Bitcoin, questions arise. What’s their intent? Are they looking to control, manipulate, or harm Bitcoin?
Larry Fink, the head of BlackRock, and the Bitcoin community both want the same thing: to see Bitcoin widely accepted as a store of value and potentially a medium of exchange.
People still think that Larry Fink and BlackRock have some sort of dubious, sinister plan to co-opt, manipulate, or destroy #Bitcoin. Take off the tinfoil hat for a minute and listen to reason. 👇 Larry Fink and BlackRock are good for Bitcoin. Why? Because of incentives. Their…
As Bitcoin enthusiasts, our goal is simple: we want Bitcoin to keep growing as a reliable store of value and, eventually, become a medium of exchange.
On the other hand, BlackRock has a singular goal, i.e. making profits. They are primarily an asset management firm, which means they profit by expanding their assets under management (AUM). It’s quite straightforward; the more Bitcoin they hold in their ETF, the more they collect in fees.
Interestingly, BlackRock’s financial goals align with our interests. They have a strong reason to promote Bitcoin awareness and adoption. BlackRock is preparing to educate clients about Bitcoin, aiming to attract hundreds of billions of dollars into their spot ETF.
Projected Earnings
Their analysts predict that existing clients will invest $200 billion in Bitcoin ETF over the first three years. Assuming they reach this goal and charge a 60 basis point fee, they could earn a significant $1.2 billion in annual fees.
Given BlackRock’s revenue multiple of 5.5x, this could boost their market capitalization by a substantial $6.6 billion. This is remarkable, especially for a single product among their many ETFs, considering their $97 billion market cap.
Growth Potential – Bitcoin to the Moon!
Larry understands that Bitcoin offers more growth potential than any other asset in their ETF family. If Bitcoin experiences a 20x increase in value over the next decade, its Assets Under Management (AUM) could soar to $4 trillion, mainly due to this single product.
Consequently, fees generated from iBTC alone could reach an astonishing $24 billion annually, pushing their market capitalization up by an additional $132 billion. (This scenario assumes only 2% of BlackRock’s current AUM goes into iBTC.)
Larry Fink Isn’t Done Yet
Yet, Larry Fink has even more ambitious goals. He knows that Bitcoin offers unparalleled potential. If Bitcoin’s value substantially increases over the next decade, their AUM, fees, and market capitalization could all grow exponentially.
In conclusion, Bitcoin presents an exceptional opportunity, even for a financial powerhouse like BlackRock.
Hot Take: BlackRock’s Bitcoin ETF and Its Impact on Price
The introduction of BlackRock’s Bitcoin ETF has the potential to significantly impact the price of Bitcoin. With projected investments of $200 billion from existing clients over three years, the annual fees earned by BlackRock could reach $1.2 billion.
If Bitcoin experiences a 20x increase in value over the next decade, BlackRock’s market capitalization could see a substantial boost of $6.6 billion, and the fees generated from their Bitcoin ETF alone could reach an astonishing $24 billion annually.
Therefore, it’s likely that BlackRock’s entry into the Bitcoin market will contribute to increased adoption and awareness, driving the price of Bitcoin higher in the long run.
Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content.