@gorrilladiesel
Understanding the iShares Bitcoin Trust and Hard Forks
A recent highlight from Wolf_Financial on X sheds light on an intriguing aspect of the #SEC filing prospectus for BlackRock's iShares Bitcoin Trust: its approach to #Bitcoin hard forks.
š Key points:
1ļøā£ If a hard fork occurs, the version of Bitcoin supported by the trust is determined by the sponsor (BlackRock).
2ļøā£ The prospectus acknowledges BlackRockās fiduciary duty to maximize profits for its clients.
This raises an important question: Why would BlackRock support a less valuable fork? Choosing the dominant, more profitable chain aligns with their profit-driven mandate.
š Takeaway for $IBIT investors:
This clause could simply be a precautionary disclosure, but itās a reminder of how centralized decision-making can impact ETFs. While BlackRockās decisions may prioritize profitability, it underscores the potential for divergence between retail Bitcoin holders and institutional vehicles.
#Crypto #BitcoinETF
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