HodlX Guest Post Submit Your Post
The usual financial suspects want in on the pending Bitcoin ETF, and Bitcoiners should be very, very afraid.
They are ‘great vampire squids‘ and ‘robber barons’ who want to suck the Bitcoin market dry and corner it.
While the Bitcoin industry generally celebrates the fact that these firms are entering the space with a Bitcoin ETF, the facts remain sobering some of the most controversial financial firms in the world want to hold Bitcoin on behalf of clients.
This opens up a risk with which Bitcoiners should be familiar counterparty risk. Yet, Bitcoiners celebrate, selling their souls for mere profits.
Bitcoiners could be in for a rude awakening before they know it.
In recent days and weeks, we’ve learned of Goldman Sachs’ and JP Morgan and Co.’s intention to play custodial roles in Bitcoin.
These firms represent everything Bitcoin was designed to protect individuals against.
Most recently, Goldman Sachs, infamous for its role in the 2008 housing collapse, recently announced its intention to play a custodial role in the BackRock Bitcoin ETF.
It turns out that the massive Wall Street investment bank will likely have a key role in BlackRock’s and Grayscale’s Bitcoin ETFs.
The company would be an AP (authorized participant) for the ETFs, which entails creating and redeeming ETF shares to ensure products are in lockstep with underlying assets.
The company has faced scrutiny and legal challenges, including settlements related to the subprime mortgage crisis of 2008 for which the company paid serious fines.
Matt Taibbi, the investigative journalist, gained notoriety for his coverage of the bank. Taibbi said,
“The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”
He also wrote,
“Where there is money to be made, the squid will strike.”
Additionally, JPMorgan Chase, one of the largest and most prominent financial institutions globally, also intends to play a custodial role for the BlackRock and Grayscale ETFs.
For its part, it has faced various legal and regulatory issues, including settlements related to mortgage-backed securities and market manipulation.
JPMorgan even paid $75 million to settle a lawsuit over its ties to Jeffrey Epstein, including that the bank aided in…
Click Here to Read the Full Original Article at The Daily Hodl…
