The impending Bitcoin ETF welcomes notorious financial giants, posing severe risks to Bitcoiners and the core principles of financial freedom. True Bitcoiners must resist the encroachment of traditional financial elites.
The potential arrival of major financial players into the impending Bitcoin ETF has sparked concerns among cryptocurrency enthusiasts, and their apprehensions may not be unfounded.
These are the 'financial behemoths' and 'captains of industry' who harbor intentions of draining the vitality of the Bitcoin market and monopolizing it for their gain.
While the broader Bitcoin community may celebrate the entry of these entities into the sector through a Bitcoin ETF, the underlying realities are stark – some of the most contentious financial institutions globally are vying to manage Bitcoin on behalf of their clients.
This introduces a risk that Bitcoin advocates should be cognizant of – the risk of relying on a third party. Nevertheless, some Bitcoin enthusiasts seem to be overlooking this concern in pursuit of short-term gains.
Bitcoin enthusiasts might be in for an unpleasant surprise sooner than they anticipate.
Recent revelations have disclosed the intentions of Goldman Sachs and JP Morgan to take on custodial roles in Bitcoin.
These institutions embody everything that Bitcoin was conceived to protect individuals against.
Most notably, Goldman Sachs, infamous for its role in the 2008 housing crisis, has expressed its interest in acting as a custodian for the BackRock Bitcoin ETF.
It appears that this Wall Street giant will play a crucial role in BlackRock's and Grayscale's Bitcoin ETFs, functioning as an authorized participant (AP) responsible for creating and redeeming ETF shares to maintain synchronization with underlying assets.
The company has faced legal scrutiny, including settlements related to the subprime mortgage crisis of 2008, resulting in substantial fines.
Investigative journalist Matt Taibbi, renowned for his coverage of the bank, described Goldman Sachs as,
“The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
He further emphasized,
“Where there is money to be made, the squid will strike.”
Similarly, JPMorgan Chase, a prominent global financial institution, also aims to assume custodial responsibilities for the BlackRock and Grayscale ETFs.
JPMorgan has grappled with various legal and regulatory challenges, including settlements related to mortgage-backed securities and market manipulation.
It even settled a lawsuit for $75 million over its ties to Jeffrey Epstein, involving allegations that the bank facilitated the disgraced financier's sex trafficking.
Most notably for Bitcoiners and Bitcoin ETF investors, JPMorgan Chase and Co. agreed to a settlement exceeding $920 million to resolve federal US market manipulation investigations into its trading of metals futures and Treasury securities.
JPMorgan Chase & Co. has faced multiple lawsuits, including a 2010 case accusing them of attempting to manipulate silver prices.
Then there is BlackRock, likely to secure approval for issuing the Bitcoin ETF once it aligns with SEC (Securities and Exchange Commission) standards.
This financial giant has earned the title of the world’s “largest shadow bank.”
In 2020, US representatives Katie Porter and Jesus ‘Chuy’ Garcia introduced a US House bill aimed at restraining BlackRock and other so-called shadow banks.
US Senator Elizabeth Warren advocated for BlackRock to be labeled ‘too big to fail’ and subjected to corresponding regulations.
BlackRock holds significant shares in numerous companies, including some of the largest globally.
While BlackRock asserts that these shares belong to its clients, not the company itself, it possesses the ability to wield considerable influence by exercising shareholder votes on behalf of clients without their direct input.
Contrary to Satoshi Nakamoto's vision of empowering individuals worldwide to hold value independently without intermediaries – hence the Bitcoin maxim, “Not your keys, not your Bitcoin” – major Wall Street firms are eager to safeguard Bitcoin on behalf of their clients, offering them a paper representation of Bitcoin, likely to be settled in cash.
One of these banks, JPMorgan and Co., has previously faced accusations of manipulating silver markets while serving as a custodian. Now, similar concerns may extend to Bitcoin.
Authentic Bitcoin proponents must stand united against those who endorse Bitcoin ETFs solely for increased profits.
They must uphold the foundational principles of Bitcoin – financial sovereignty and freedom, rejecting subservience to the entrenched financial elite of the past.
Kadan Stadelmann, a blockchain developer and operations security expert, currently serving as the Chief Technology Officer of the Komodo Platform, brings a wealth of experience ranging from government operations security to launching technology startups and delving into application development and cryptography. Stadelmann commenced his journey into blockchain technology in 2011 and joined the Komodo team in 2016.