BlackRock, the world’s largest fund manager, sent shockwaves through the crypto world when it filed for a spot Bitcoin ETF in June. Recently, industry watchers pointed out that BlackRock had included warnings about how Tether—and the stablecoin market in general—could negatively impact the Wall Street titan’s Bitcoin ambitions. Although the U.S. Securities and Exchange Commission hasn’t yet approved a Bitcoin ETF, experts say it’s only a matter of time. Tether mints USDT—the third-largest cryptocurrency after Bitcoin and Ethereum, with a market cap of $87 billion—which is used to enter and exit trades quickly and without using a traditional bank or fiat currency. However, Tether is controversial and has been slow to provide documentation to prove that U.S. dollars back USDT, and the entity is not independently audited. VanEck strategy advisor Gabor Gurbacs said that mentioning any risk was “prudent practice” and that regulators flagged potential risks around digital asset market structure matters (including stablecoins) many years ago. This is good news for Bitcoin and the crypto market, as it shows that BlackRock is being transparent about the potential risks that could arise. #BlackRock #BitcoinETF #Tether #Stablecoins #SEC
You can read more about this topic here: Decrypt: Why BlackRock Considers Tether a Risk for Its Bitcoin ETF
