Crypto community split on BlackRock’s Bitcoin ETF application.

A recent application by BlackRock, a large asset management firm, to launch a Bitcoin exchange-traded fund (ETF), has sparked a debate within the cryptocurrency community. There are mixed reactions and concerns about the involvement of traditional financial giants in the industry.

Many see BlackRock’s move into the crypto space as a significant validation for the industry, especially after a turbulent period of bankruptcies and scandals. However, some in the crypto community have raised concerns about BlackRock’s potential entry into the space, pointing out that traditional Wall Street giants are likely looking out for themselves and not crypto-native companies and users.

Is power over crypto shifting to traditional finance firms?

Critics believe that BlackRock’s filing could be part of a broader power shift favoring traditional financial institutions in the crypto landscape. This sentiment is shared by many in the community and was reinforced by the recent launch of EDX Markets, a crypto exchange backed by prominent Wall Street players, including Citadel Securities, Fidelity, and Charles Schwab, as well as renewed ETF filings from the likes of Valkyrie Funds.

According to a recent article by business news outlet Insider, BlackRock has long shown interest in the crypto space and already has close to a dozen executives focused on the sector. However, skeptics have expressed concerns about the potential compromise of core crypto principles such as privacy and decentralization, while noting that the involvement of major financial firms is viewed as a threat to crypto’s disruptive nature.

The same stance was echoed by the Insider article, which likened the entry of traditional financial institutions into crypto to “letting the fox in the hen house.” The article reminded readers that finance firms play for keeps and are not necessarily looking out for the best interests of crypto-native companies and users.