Original article by: Boluwatife Adeyemi
Original title: BlackRock And Bitcoin ETFs Saved BTC Price, Bloomberg Analyst Claims
Original source: Coingape.
Compiled by: Koala, Mars Finance
Bloomberg analyst Eric Balchunas said that BlackRock and Bitcoin ETF have saved BTC prices many times and prevented them from falling sharply.
Bloomberg analyst Eric Balchunas asserts that BlackRock and the Bitcoin ETF saved BTC from a major drop. The analyst’s statement is related to rumors that the world’s largest asset manager received Bitcoin IOUs from the Coinbase cryptocurrency exchange. A popular cryptocurrency analyst has proposed a theory that the asset manager may have used these IOUs to short BTC, causing the coin to fall at different times.
BlackRock and the Bitcoin ETF Saved the Bitcoin Price
Balchunas said in the X post that BlackRock and the Bitcoin ETF have saved the BTC price from the “abyss” many times. The analyst made this statement to counter the idea that traditional investors are to blame every time the Bitcoin price drops. He added that he understands why these theories exist because people want to “scapegoat the ETF” because they find it hard to believe that local HODLers could be sellers.
However, Eric Balchunas claims that these Bitcoin natives are the sellers. He points out that it is them, not traditional investors, who are destroying the price of Bitcoin. Ali Martinez, a well-known Bitcoin analyst, recently revealed that BTC miners sold more than $30,000 of BTC in three days, proving Balchunas' point that "the calls are coming from inside the house."
#Bitcoinminers sold over 30,000 $BTC worth ~$1.71 billion in the last 72 hours!”
It is worth mentioning that these Bitcoin ETFs have contributed greatly to the BTC price hitting a record high (ATH) of $73,000 in March this year. These funds have witnessed impressive net inflows immediately after their launch, leading to new money flowing into the BTC ecosystem and triggering its price increase. BlackRock, in particular, has been holding onto its tokens, recording only three net outflows per day since its launch in January.
Coinbase Helps TradFi Suppress Bitcoin
There are rumors that Coinbase is opening Bitcoin IOUs for BlackRock, thereby suppressing the price. Crypto analyst Tyler Durden is one of those who keeps making such allegations. Earlier this year, the analyst explained that the IOUs that cryptocurrency exchanges open to asset managers mean that they can borrow as much Bitcoin as they want to short without having to show proof that they hold Bitcoin at a 1:1 ratio.
“I told everyone I’ve seen the chain — I mean it’s a public ledger, literally anyone can do it — and Coinbase is writing IOUs for Blackrock. Now everyone is woke and hoping there’s a bank run on Coinbase. Baldilocks is against Bitcoin.” — Tyler (@TylerDurden) September 14, 2024
To further prove his point that the world’s largest asset managers are suppressing BTC prices with the help of Coinbase, Durden cited data from Cryptoquant. He claimed that the U.S. cryptocurrency exchange was the biggest buyer and seller at every bottom and top in this range. The analyst also believes that asset managers will at some point push the market higher and crash it or cause a sharp correction.
Meanwhile, Coinbase CEO Brian Armstrong responded to Durden's allegations, clarifying how the minting and destruction of the ETF is handled and how it is ultimately settled on-chain. He said there was no foul play, noting that the reports are audited and available to everyone. Armstrong added that they are not authorized to share the addresses of institutional clients, including BlackRock.
At the time of writing, Bitcoin is trading around $60,000. Coingape reports that this week’s expected rate cut by the Federal Reserve could benefit BTC prices. Historically, this macro event has been positive for the coin.
