The CEO of BlackRock, Larry Fink, made a revealing statement in 2017, stating, “you have to force behaviors, which is exactly what we are doing at BlackRock.” The clip of his comment can be viewed here: YouTube link.
As the largest asset manager globally, with approximately $9 trillion of assets under its management, BlackRock holds significant power and wields it to great effect. While some may choose to overlook their controversial track record due to recent market excitement, their entry and increasing influence in the crypto space raise concerns about potential control and manipulation, similar to their practices in traditional finance (TradFi).
BlackRock has filed for a Bitcoin exchange-traded fund (ETF) and is actively planning a substantial foray into the crypto market. Given their historical approval rate of 575-1 for ETF applications, it appears highly likely that their Bitcoin ETF will receive regulatory approval.
Those familiar with BlackRock’s operations understand their propensity for leveraging their financial clout and influence to amass even greater wealth and control, often at the expense of regular individuals. It is important to note that Fink’s aforementioned statement was made during an Environmental, Social, and Governance (ESG) CEI meeting. Many are aware that ESG initiatives often serve as a guise for major corporations and financial giants like BlackRock to exercise dominion over investments and the flow of capital by using their own ESG scores as decision-making tools.
Now, it is this very company that is venturing into the crypto space, with their Bitcoin ETF likely to be the first approved. This first-mover advantage will enable BlackRock to attract significant institutional investor interest, seeking exposure to cryptocurrencies through a familiar and regulated investment vehicle. Moreover, there is a strong possibility that BlackRock will expand its offerings to include other ETFs such as Ethereum and potentially exert similar control and influence over the crypto market.
Critics argue that we may witness a repetition of the same narrative in the crypto industry, as BlackRock and similar entities employ excuses such as environmental concerns related to Bitcoin mining to lower ESG scores and limit investment in cryptocurrencies. There are concerns that they may attempt to force the adoption of their own digital currencies or even central bank digital currencies (CBDCs), leveraging their market power and influence as a Trojan Horse, similar to the agenda being promoted by the International Monetary Fund (IMF).
As BlackRock’s presence in the crypto space intensifies, industry participants and enthusiasts must remain vigilant and seek to ensure that the principles of decentralization, financial sovereignty, and open markets are not compromised by concentrated power and influence. Safeguarding the integrity and core values of cryptocurrencies will require active participation from the community to resist attempts at control and manipulation that may arise from influential players like BlackRock.