BlackRock ‘Will Completely Destroy Bitcoin’—Shock Price Warning As Leak Reveals Huge Spot

12/26 update below. This post was originally published on December 24

BitcoinBTC has rocketed higher this year, with the bitcoin price surging this month to highs not seen since early 2022—with a China earthquake suddenly appearing on the horizon.

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The bitcoin price touched $45,000 per bitcoin before dropping back slightly, climbing steadily since October as the market braces for a “Biden bailout” in 2024.

Now, after Wall Street giant BlackRock primed the market for a major upheaval, one legendary trader has predicted the world’s largest asset manager’s looming bitcoin spot exchange-traded fund (ETF) could be about to “completely destroy bitcoin.”

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MORE FROM FORBES’Big News’-Forget The Spot Bitcoin ETF, A Huge Unexpected Bank Flip Could Be About To Hit The Price Of Bitcoin, Ethereum, XRP, Solana And CryptoBy Billy Bambrough

Street’s BlackRock-led charge in recent months.Getty Images

“If ETFs managed by [traditional finance] asset managers are too successful, they will completely destroy bitcoin,” bitcoin and crypto trader Arthur Hayes, who cofounded crypto derivatives pioneer BitMex, wrote in a blog post.

Hayes argued that if BlackRock, which is in “the asset accumulation game,” vacuums up all the bitcoin, there will be no more bitcoin transactions and those who secure the bitcoin network in return for fees and newly minted bitcoin, known as miners, “would be unable to afford the energy it costs to secure the network. As a result, they would shut off their machines. Without the miners, the network dies, and bitcoin vanishes.”

12/26 update: Institutional investors will take a more active interest in the crypto markets next year if a spot bitcoin ETF is approved, the Federal Reserve cuts interest rates and lawmakers finally create some regulatory clarity, according to analysts surveyed by The Block.

“Since late October, there’s been a noticeable uptick in institutional activity, largely driven by the anticipation surrounding the potential ETF news expected in January and strategic positioning by clients for this event,” Deribit chief commercial officer Luuk Strijers told The Block.

Hayes, who has also predicted China is about to “flood the world with yuan credit,” said the death of bitcoin would “create space for another crypto monetary network to grow in its place. This network could just be a reboot of bitcoin or something different that is an improved adaptation of the original bitcoin. Either way, the people will once again have a non-state-controlled monetary asset and financial system.”

Hype around BlackRock’s bitcoin spot ETF application, widely expected to be given the green light by the U.S. Securities and Exchange Commission (SEC) early in the new year, has fed expectations that a surge of Wall Street cash could be about to rush into bitcoin.

This week, a leak of the confidential discussions between the SEC and executives of the 13 asset managers in the race to get a bitcoin spot ETF to market revealed the SEC has set a December 29 deadline for “final updates” to their applications, it was reported by Reuters.

Two executives told Reuters that the SEC indicated it could approve a “wave” of bitcoin spot ETF applications in the first few business days of 2024 as BlackRock’s latest filing shows it’s ramping up preparations for approval.

“BlackRock expecting to seed [its bitcoin spot ETF] with $10 million on January 3,” Bloomberg Intelligence analyst Eric Balchunas posted to X. “Notable the date and that it is a pretty big bump up from the $100,000 [BlackRock] seeded in October.”

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climbing in large part thanks to BlackRock’s sudden interest in bitcoin and crypto.Forbes Digital Assets

Bitcoin and crypto market analysts are predicting a bitcoin price boom if the SEC follows through with the expected approval of the slate of bitcoin spot ETF applications.

“We are expecting the SEC to approve bitcoin spot ETFs in January,” Markus Thielen, head of research and strategy at Matrixport, wrote in emailed commentary.

“This should lift bitcoin prices above $50,000 by the end of January 2024. The SEC has responded swiftly and frequently, and after productive meetings between the SEC and ETF issuers, there appears to have been enough progress. BlackRock has met five times and Grayscale four times with the SEC during the last few weeks.”

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