Will BlackRock Trigger Hyperbitcoinisation? With Alex Thorn - WBD686

Alex Thorn is Head of Firmwide Research at Galaxy. In this
interview, we discuss Bitcoin Park and others' efforts to promote
Bitcoin, the impact of BlackRock's involvement in Bitcoin, and
the legal battle between Coinbase and the SEC. We also talk about
the need for education and inclusivity for Bitcoin, the
importance of maintaining decentralization, and the impact of
Bitcoin on the future.


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BlackRock is the world’s largest asset manager, with AUM in
excess of $9 trillion. So, the news that they were throwing their
hat into the spot Bitcoin ETF ring has unsurprisingly caused
excitement and concern within the Bitcoin community. If BlackRock
is successful it will materially widen access to Bitcoin, and
significantly increase the buying pressure.


In terms of signal, this is perhaps the most important event in
the validation of Bitcoin as an asset. Larry Fink, BlackRock’s
CEO, has changed tack and is now endorsing Bitcoin as digital
gold. Such comments penetrate more than those of other
commentators and provide unparalleled credence to Bitcoin amongst
the professional investing class.


The pressure on the SEC will only now increase as they review the
latest batch of Bitcoin spot ETF applications. This is at a time
when they are involved in a number of critical legal disputes,
including their battle against Coinbase. The SEC’s approach -
failing to provide formal rulemaking for the crypto markets
whilst operating a divide-and-rule approach to individual
companies - is "extremely stifling" to say the least.


That said, whilst increased engagement from traditional asset
managers is welcomed, it also comes with material risks. There
are rightfully severe concerns about their involvement's impact
on efforts to promote self-custody and strengthen
decentralisation. It is vital that those managing or advising new
investments are educated on Bitcoin’s unique characteristics in
ways that appeal, and that they are welcomed into the Bitcoin
community.


Bitcoin needs to be understood and embraced by mainstream culture
in order to achieve widespread adoption. The community,
therefore, needs to make Bitcoin accessible to a diverse group of
people, regardless of their backgrounds, experiences,
geographies, and ideologies. At the same time, Bitcoin’s core
values need to be protected. Strong, principled voices like Marty
Bent, Stephan Livera, and Matt Odell, need to continue educating
and guiding the community.


 


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