These days, some people have speculated that the Coinbase team has written Bitcoin IOUs for BlackRock, and BlackRock is manipulating the prices.
BlackRock is the top ETF issuer firm in the world, and its reputation and financial health are very strong. BlackRock issues Bitcoin spot ETF products to allow people to invest in Bitcoin via the stock market. Coinbase crypto exchange acts as a trading agent for BlackRock, which buys and sells Bitcoin for BlackRock’s ETF through Coinbase Prime.
Over the last few days, some people have claimed that Coinbase is issuing Bitcoin IOUs (I Owe You) to BlackRock, a large investment firm, instead of transferring actual Bitcoins.
This means that by not actually buying or moving real Bitcoins (just issuing IOUs), BlackRock may be able to keep the price of Bitcoin artificially low. However, these are only speculations, and there is no evidence supporting these allegations.
ETF Store President Nate Geraci shared his opinion on this matter, stating that speculations around Bitcoin spot ETFs are coming from people who don’t understand how ETF products work.
He also said he heard similar things about Gold spot ETFs in the past.
In response, a Bitcoin maximalist said that owning Bitcoin on any crypto exchange, including the Coinbase platform, just means “your wife is sleeping with other men.”
In response, the ETF Store president supported the comment of the Bitcoin maximalist and indirectly said that holding a Bitcoin spot ETF product is similar to holding Bitcoin on the Coinbase platform.
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