- BlackRock head Larry Fink and the Bitcoin community want the same thing: to see Bitcoin become widely accepted as a store of value and potentially become a medium of exchange.
- BlackRock is preparing to educate clients about Bitcoin and aims to attract hundreds of billions of dollars into its spot ETFs.
- Fees from iBTC alone could reach a staggering $24 billion annually, increasing market caps by an extra $132 billion.
BlackRock and its CEO Larry Fink became interested in Bitcoin: What are the reasons behind this interest? What might BlackRock’s purpose be?
Is BlackRock Trying to Harm Bitcoin?
When major players like BlackRock enter the crypto world, questions arise. What are their intentions? Are they trying to control, manipulate, or harm Bitcoin? BlackRock’s CEO Larry Fink and the Bitcoin community share a common goal: to see Bitcoin widely accepted as a store of value and potentially become a medium of exchange.
As Bitcoin enthusiasts, our goal is simple: we want Bitcoin to continue growing as a reliable store of value and eventually become a medium of exchange. On the other hand, BlackRock has a single objective: to make profits. They are essentially an asset management company, and they make money by expanding their assets. It’s quite straightforward; the more Bitcoin they hold, the more fees they collect.
Interestingly, BlackRock’s financial objectives align with our interests. They have a strong reason to promote Bitcoin awareness and adoption. BlackRock is preparing to educate their clients about Bitcoin and aims to attract billions of dollars into spot ETFs.
Analyses predict that existing clients may invest $200 billion into Bitcoin ETFs within the first three years. If they reach this target and charge a 60 basis point fee, they could earn a significant $1.2 billion annually.
With BlackRock’s 5.5x earnings multiplier, this could significantly increase their market value by $6.6 billion. This is remarkable, especially considering their unique product among many ETF offerings with a market value of $97 billion.
Growth Potential – To the Moon with Bitcoin!
Larry understands that Bitcoin offers more growth potential than other assets in the ETF family. If Bitcoin increases in value 20-fold over the next decade, the assets under management (AUM) could reach $4 trillion, largely thanks to this single product.
As a result, fees generated from just iBTC could reach a staggering $24 billion annually, and it could add an extra $132 billion to market values. (This scenario assumes only 2% of BlackRock’s current AUM goes to iBTC.)
However, Larry Fink has even more ambitious goals. If the value of Bitcoin significantly increases over the next ten years, AUM, fees, and market value could all grow exponentially. Consequently, Bitcoin offers an extraordinary opportunity even for a financial giant like BlackRock.
