Blackrock and Fidelity disagree, but what would investment firms with the 1st and 3rd largest AUM know anyway. Hilarious that this is still a take.
Not touching the merits of the argument, but these big financial companies can't/don't care about the viability of assets so much, they only care if there is demand for the product. They'd sell you a rusty trash can for 50 bps in management fees.
appealing to the authority of fidelity is the same as the people who appealed the authority and success of madoff in justifying their decision to put money with him Bitcoin is an asset that generates nothing. It’s a giant waste of electricity that provides a “currency” that’s only useful for facilitating crime. It generates nothing of value for the world and it’s only real value is the collective delusion of its fan base
Bitcoin is nothing but a magic the gathering card that takes 50000 gigawatts of power to produce and doesn’t have cool art
I just wanna get this straight. So in this comparison Blackrock and Fidelity are backing the idiots and criminals or are the idiots and criminals?
They aren't backing the asset at all. They are selling access to a product that there's demand for. I could have this wrong, but I don't believe the SEC has allowed any financial institution to hold BTC on their balance sheets with the latest ruling. The banks have to have an intermediary transact the assets for them. That's a notable divergence from other act 33 or act 40 ETFs. While they have custodians and transfer agencies, the banks themselves trade the securities or the commodities to strike the nav.
I don’t disagree with them willing to sell anything. There’s an anti woke etf ffs. Known Ponzi scheme backed by criminals? Lol come on
Backing wasn’t the right word I suppose but to spin this any other way than an endorsement is comical. Sorry to break up all the backdoor IRA talk.
I don't agree it's an endorsement. It's an opportunity to increase aum for a high management fee commodity. It's generally a no brainer because these institutions have literally no skin in this. They don't care if it fails, they won't lose a dime, other than the fees.
Yeah so I don't get the argument that wall Street is fake and criminals except when it comes to crypto It doesn't square at all but crypto people seem hell bent on making it
It's not high management fee. The CEO of Fidelity is a massive bitcoiner and has been for years. Larry Fink has been on a roadshow on tv advocating for the asset class. They're running calls to advocate for it to RIAs. They're advertising it on Google. In what world is this not an endorsement?
2008 and I are having a good laugh over the the "large financial institutions know what they're doing!" vibe
Known ponzi scheme endorser...checks notes....Fidelity has been mining bitcoin since 2014 (source: https://www.fidelity.com/crypto/overview#:~:text=In 2014, Fidelity began mining,investment opportunities for our clients.), offered institutional custody and trading back in 2018, and has been writing articles for literally years advocating for the asset: https://www.fidelitydigitalassets.com/research-and-insights/bitcoin-first https://www.fidelitydigitalassets.com/research-and-insights/bitcoin-first-revisited
There's an important, fine, distinction to make here. It's not an endorsement of the validity of the commodity, it's only a promotion of their own product they wish to sell. Not every product a company sells is made from an ideological place. A lot of products just exist because there's demand for it. It's splitting a hair, but a guarantee you these institutions aren't pushing this because they believe in it, they are pushing it because it's free money. Advertising their product != believing in bitcoin.
I feel like I could say bitcoin 3x in the mirror and user15000 would show up with 3000 charts and tweets from people I’ve never heard of
Within the first 35 seconds of the Larry Fink video in the post you quoted, he literally says "I'm a big believer." Go another 30 seconds and you'll hear "I'm a believer in it." You're not splitting a hair. You're sticking your head in the sand.
I read this thread all the time to see how ya'll generally feel. If you have never heard of Fidelity, Blackrock, or Larry Fink, I'm afraid that's a you problem.
I don't know why you're taking this so personally, but again Larry Fink is doing a spot on a nationally televised station. Do you believe his personal drive to make money is less than his belief in a commodity? I don't really give a shit about BTC, or any other crypto at this point. But I have a pretty good sense of how these people and institutions work. They aren't here to promote an ideology, they are looking to build products for people to buy. That's all there is to it.
alright bitcoin did do something cool once (be so widely used by pedophiles that it let the government throw them all in jail) https://www.wired.com/story/tracers-in-the-dark-welcome-to-video-crypto-anonymity-myth/
Blackrock's yearly revenue is typically north of $17 billion. A .25% fee on an ETF that has $10b in AUM will bring in a whopping $25m. Who knew the bitcoin ETFs were such a huge driver of revenue that Fink would....I guess lie about his own view of it publicly, which appears to be your point, in order to make $25m per year. Anyways...talks like these are a good reminder to me of where things stand in adoption.
I wholeheartedly believe everything you’re saying. Belief in the commodity or not he’s certainly opening up avenues for folks to invest in this asset class that otherwise wouldn’t. Which in turn IS good for the commodity.
It could be. There's long term challenges with liquidity in a fixed block commodity that, honestly, I don't know if the industry understands how they will work. How to manage deposit baskets, create/redeem processes, etc, as BTC reaches its maximum mined limit. To my knowledge, there's no other commodity that has that structure.
I love when shady shit for greedheads bleeds into the larger financial sphere so when it tanks it can hurt people who wanted nothing to do with it
Another point on the BTC ETP issue, these funds/ETFs are only as stable as they are liquid. If a majority of people are buying and holding BTC, it could get to a point where these funds can't trade, and all of them will be in danger of failing, and dramatically impact what little stability the funds have.
I personally think it will trade like gold sooner than bitcoiners think. It will be a decent store of value and you’ll beat inflation but you won’t see the multiples like you have in the past. Will be interesting to see what happens to it after that.
That makes a lot of sense, I just have no idea how gold would track if you said there's only x number of ounce of gold anywhere. How would that impact demand and liquidity.
*who dramatically outperform the market. I’m just a dipshit who buys daily and has outperformed every baseline comparison that exists by orders of magnitude. Maybe one of these years the scoreboard will agree with you though…
Anytime a small real estate investor does anything remotely complicated in a stressed situation you should put your guard up and assume they are only looking out for themselves.