BlackRock discloses ‘exposure to stablecoin risks’ on spot Bitcoin ETF
BlackRock Inc. (NYSE: BLK) is the largest asset manager in the world, and the cryptocurrency market enthusiastically awaits a US spot Bitcoin ETF. Bitcoin (BTC) investors and analysts speculate on the effects of an expected approval of this financial product that is still under the SEC’s review. Interestingly, the public document sent to the regulators discloses different risks related to the ETF. Among the “Risk Factors,” BlackRock mentions an indirect exposure to stablecoins such as Tether USD (USDT) and Circle USD (USDC). “While the Trust does not invest in stablecoins, it may nonetheless be exposed to risks that stablecoins pose for the bitcoin market and other digital asset markets.” — BlackRock Following this introductory disclosure, the company explains what a stablecoin is and that its “market value may fluctuate.” According to BlackRock, this observed volatility exists despite the protocol’s mechanism to keep the token’s price “stable” against its pegged asset or currenc...