Nov 14, 2023 9:29 pm
BlackRock points to stablecoin risks for its spot Bitcoin ETF
BlackRock, the world's largest asset management company, said that its Bitcoin spot ETF under review is indirectly exposed to stablecoin risks.
BlackRock pointed out that although the trust fund itself does not invest in stablecoins, it may be affected by the risks brought by stablecoins to the Bitcoin market and other digital asset markets, especially stablecoins such as USDT and USDC, whose market fluctuations may have an impact on Bitcoin. have a significant impact on currency prices.
BlackRock said that stablecoins play a fundamental role in the digital asset market, but their instability, potential manipulation and regulatory issues may lead to violent fluctuations in Bitcoin and other digital asset markets.
BlackRock said the spot Bitcoin ETF’s indirect exposure to stablecoins creates multiple risks for investors.