Bitcoin ETF Specialist Refutes Unfounded BlackRock Speculation
On a recent Saturday, an unfounded rumor began circulating on social media that Coinbase was issuing Bitcoin IOUs to BlackRock to manipulate the price of Bitcoin. This rumor quickly gained traction, with one post garnering thousands of likes, fueling the conspiracy further.
The term “IOU,” short for “I owe you,” denotes tokens representing a debt to another party. The crux of the rumor is that BlackRock purportedly holds these IOUs issued by Coinbase instead of actual Bitcoin.
Despite the rapid spread of this wild theory, experts were prompt in debunking it, asserting that there is no truth to the claims. Nate Geraci, president of The ETF Store, reassured market participants that exchange-traded funds (ETFs) indeed hold the underlying assets, such as Bitcoin, dispelling any doubts.
Geraci emphasized the simplicity and legitimacy of ETF ownership, noting that similar baseless theories have circulated in the past, including concerning physical gold ETFs. He emphasized that those perpetuating such misinformation lack a fundamental understanding of how ETFs operate.
Chicago-based commercial litigation attorney Joe Carlasare highlighted the implausibility of the alleged scheme, pointing out that multiple entities, including Coinbase, BlackRock, auditors, accounting firms, and law firms, would need to collude for it to succeed – a scenario deemed highly improbable.
The launch of BlackRock’s Bitcoin ETF earlier this year generated significant interest, attracting over $20 billion in flows year-to-date and setting new records in the process. The product, alongside various competing offerings, has been a focal point in the cryptocurrency market, signaling growing institutional interest in digital assets.
In conclusion, the cryptocurrency community remains vigilant against baseless rumors and unfounded claims, emphasizing the importance of fact-checking and expert analysis to navigate the evolving landscape of digital assets and investment products.
