As the world was glued to the news of the Securities and Exchange Commission (SEC) delaying the approval of six Bitcoin spot ETFs, a few significant developments were quietly unfolding behind the scenes. Events that could arguably signal a potential orchestrated move by Blackrock, the world’s largest asset manager, in 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:
Though Bitcoin is not a Proof of Stake (POS) cryptocurrency, making Blackrock’s influence seemingly less harmful, there’s more to this than meets the eye.
Bitcoin mining is a significant determinant of its governance and future changes. Blackrock’s ownership in these major mining companies could, hypothetically, offer a lever to influence Bitcoin’s network decisions, should the asset manager opt to exert its influence.
Adding fuel to the fire is the fact that the two largest Bitcoin mining pools now require their users to go through the Know Your Customer (KYC) process. KYC, previously a requisite only for regulated exchanges, now extends its tentacles into the mining realm. This compliance shift could reduce the decentralization ethos that Bitcoin has held since its inception.
Why it Matters
The infusion of KYC into mining pools could potentially allow companies like Blackrock to access significant amounts of data related to Bitcoin transactions. This is an alarming trend given the increasing institutionalization of Bitcoin mining.
Let’s not forget that the SEC has conveniently delayed its decision on six Bitcoin spot ETFs. Among the applicants? You guessed it—Blackrock. The other companies facing delays include Invesco Galaxy, WisdomTree, Valkyrie, Bitwise, and Fidelity.
The delays raise eyebrows, not because of the delay itself—which is quite typical of the SEC—but due to the simultaneous backdoor moves made by Blackrock. Is the asset manager using this as a smoke screen for its actions in the mining space?
Blackrock’s Mysterious ETF Wording
On Page 24 of Blackrock’s original Bitcoin ETF filing, the company states that they are under no obligation to “choose the most economic chain in the event of a Bitcoin hard fork.”
Why wouldn’t Blackrock commit to selecting the most valuable Bitcoin fork? Could they be planning to create a hard fork themselves, nudging their investors onto an uneconomic chain?
While we’re not making any assertions about Blackrock’s intentions, we cannot ignore the possibility that they might be subtly laying the groundwork for something more extensive!
