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- A document shared by a renowned analyst shows that BlackRock could be planning for a Bitcoin fork.
- However, a crypto expert warns that an absolute rejection by the market and complete liquidation of its airdropped token could crash BlackRock’s IBIT.
BlackRock is reportedly planning on one of the most controversial Bitcoin (BTC) forks in history as their US Securities and Exchange Commission (SEC) filing prospectus reveals a jaw-dropping development.
Looks like Blackrock might be trying to fork Bitcoin. Don’t believe me? Their SEC filings suggest I’m right. If you own Bitcoin, you need to read this 👇 pic.twitter.com/RheaYQgdfW— WOLF (@WOLF_Financial) January 4, 2025
Details of the Filing
According to a screenshot shared by a Goldman Sachs Analyst identified as WOLF, the Sponsor, as written in the filing, has been proposed to use its discretion as permitted by the terms of the Trust Agreement to “determine which peer-to-peer network among the group of incompatible forks of the Bitcoin network is generally accepted and should be considered for its purpose.”
There is no guarantee that the Sponsor would choose a digital asset that is ultimately the most valuable fork, and the Sponsor’s decision may adversely affect the value of the shares as a result.
Fascinatingly, WOLF believes that this initiative appears harmless on the surface but has deep-rooted problems. Firstly, he thinks that the proposition of BlackRock siding with the Sponsor’s decision on the Bitcoin version in the event of a hard fork is highly uncomfortable. Additionally, the analyst believes that the statement highlighted below is very suspicious.
According to him, BlackRock operates as a for-profit company responsible for managing and making money for its clients. In this case, choosing to adopt a less valuable fork could negatively affect the profit of its Exchange-Traded Fund and generate concerns among clients.
Speaking on the potential performance, WOLF highlighted that the majority of the community would reject an eco-friendly fork. In this case, the value of their forked Bitcoin would be less than the pre-forked Bitcoin.
Will This Affects Bitcoin
According to WOLF, BlackRock’s decision would not affect Bitcoin, as all centralized Bitcoin forks failed in the past. Additionally, engaging in this activity would imply that its Bitcoin ETF would continue to receive passive inflows. In his observation, the market has only flowed to the greatest return. This implies that the centralized version is bound to fail.
Concluding his thread, the analyst highlighted that he remains bullish on Bitcoin.
Some say, “FUD,” I say, “Do your research” I’m bullish on Bitcoin and understand it can never hurt to know more. If this post makes you angry I think you might have bigger problems going on in life.
Commenting on this development, one of the key players in the crypto industry, Tuur Demeester, cautioned that BlackRock’s IBIT could be heading for a crash as Bitcoin whales and holders would likely sell the airdropped tokens generated from the fork.
All the shaky prospectus of Blackrock’s $IBIT means is that it has the ability to rug-pull its ETF holders. BTC HODLers & whales would simply sell the airdropped shitcoin. If Blackrock doubled down, IBIT would crash and Larry Fink would turn into the new Roger Ver.
Regardless of this centralized Bitcoin decision, BlackRock’s portfolio is reported to favor only two cryptos – Bitcoin and Ethereum, as recently featured in a report by CNF.
At press time, BTC was trading at $99.3k after surging by 1% in the last 24 hours to extend its weekly gain to 6.3%. Currently, the asset has a market cap of $1.97 trillion, extending its market dominance to 55.8%. As we discussed earlier, an expert believes that Bitcoin could sustain its momentum to peak at $200k in 2025.
