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BlackRock’s misguided effort to create ‘Crypto for Dummies’

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Crypto doesn’t need BlackRock’s Bitcoin ETF. It undermines the basic tenets of cryptocurrency — from banking the unbanked to reducing global oppression.

BlackRock, a multinational investment company, shocked many in the cryptocurrency industry in June when it filed an application for an exchange-traded fund (ETF), the iShares Bitcoin Trust. It’s seeking to overcome 10-year-long opposition from United States regulators to cryptocurrency ETFs. A spot Bitcoin ETF would be tradable on a traditional stock exchange and track with the market.

While supporters argue that ETFs are tax-efficient, easy to trade and cheap, BlackRock’s approach is arguably misguided. It is important to keep in mind that ETFs do not have the same focus or goals as Bitcoin (BTC).

Problems with the traditional finance sector

The traditional finance sector has long been dominated by institutions that control the flow of capital and dictate the terms of finance. Many people feel disenfranchised by these institutions, feeling they have restricted access to wealth creation, developing barriers for individuals and small businesses.

Related: Bitcoin ETFs: Even worse for crypto than central exchanges

Therefore, the arrival of cryptocurrencies presented a significant opportunity to offer an alternative to the traditional finance system that promises increased autonomy, inclusivity and transparency. However, merging traditional finance and decentralized finance (DeFi) is critical for mass adoption.

Bitcoin ETF next deadline August 13th

(But this is for the ARK re-filing)

Likely gets postponed IMO while most eyes will be watching Sept 2nd for BlackRock ETF deadline

BlackRock likely the first approved, if any, as the rest are just re-filing pic.twitter.com/h2ESr6aMnp

— Rager (@Rager) August 5, 2023

We need to move toward an industry where DeFi can serve legacy financial institutions rather than view them as targets. Major banks and players want to get into crypto, but there is also a potential for the general public to enter this new world in the future and address the many limitations or barriers associated with the traditional finance sector. The arrival of ETFs represents the financial industry’s attempts to integrate the innovation of cryptocurrencies.

ETFs promote centralization

There are many different kinds of cryptocurrency exchanges. The most popular are centralized exchanges — like FTX. Centralized exchanges hold the private keys to their clients’ wallets, and they generally require users to undergo a Know Your Customer (KYC) process to help curb illicit and illegal activities.

Decentralized cryptocurrency exchanges, by contrast, are built atop a decentralized, noncustodial blockchain system that supports direct peer-to-peer transactions. This approach essentially removes the need for intermediaries. Users do not have to complete the KYC process — which means people living under repressive governments have an opportunity to participate. They also maintain autonomy over their private keys and are solely responsible for the security of their funds — which they can stake to earn interest.

Related: Don’t be naive — BlackRock’s ETF won’t be bullish for Bitcoin

Crypto’s ability to offer these advantages — especially to unbanked users who are unable to access traditional banking services — is the entire point of the industry.

ETFs, on the other hand, are inherently centralized products, creating a conflict with the decentralized nature of Bitcoin and other cryptocurrencies. They offer none of the advantages that comprise the foundation of cryptocurrency, nor do they encourage new users to become involved.

In addition to undermining Bitcoin’s core principles of decentralization and trustless transactions, ETFs also introduce the problem of “paper” Bitcoin — BTC that exists only on paper. With no ability to withdraw the “Bitcoin” you supposedly own, the prospect of FTX-style catastrophes arising in the future becomes much likelier.

We need to demystify cryptocurrency — not create a “Crypto for Dummies” fund

Most people do not grasp the basics of Bitcoin, nonfungible tokens or cryptocurrencies in general. It’s critical that those of us who are in cryptocurrency identify a comfortable entry point into the crypto world for the general public to engage. Demystifying cryptocurrencies and Bitcoin will lead to broader adoption. Transforming Bitcoin into an easily tradable asset could dilute its role as a revolutionary decentralized currency.

Traditional finance should be leveraged as a stabilizing force. Its structures could potentially offer stability to the volatile crypto market. If implemented properly, they could provide security, accessibility and trust, and even attract more mainstream investors to cryptocurrencies. Strict regulatory oversight could also legitimize Bitcoin and cryptocurrencies for the general public and financial institutions.

There is a huge need for evolution in traditional finance. Institutions must adapt and evolve to fully embrace cryptocurrencies. They should incorporate the ethos of decentralization and autonomy that cryptocurrencies represent rather than simply integrating Bitcoin into existing structures. And that means BlackRock should consider putting the kibosh on its Bitcoin ETF.

Daniele Servadei is the co-founder and CEO of Sellix, an e-commerce platform based in Italy.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Source

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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