Coinbase is writing Bitcoin IOUs for BlackRock and they are suppressing the price: Rumours

These days, some people have speculated that the Coinbase team has written Bitcoin IOUs for BlackRock, and BlackRock is manipulating the prices.

BlackRock is the top ETF issuer firm in the world, and its reputation and financial health are very strong. BlackRock issues Bitcoin spot ETF products to allow people to invest in Bitcoin via the stock market. Coinbase crypto exchange acts as a trading agent for BlackRock, which buys and sells Bitcoin for BlackRock’s ETF through Coinbase Prime.

Over the last few days, some people have claimed that Coinbase is issuing Bitcoin IOUs (I Owe You) to BlackRock, a large investment firm, instead of transferring actual Bitcoins. 

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Rumors are circulating that Coinbase is writing #Bitcoin IOUs for BlackRock and they are suppressing price. pic.twitter.com/bhRZpgZUCA

— BITCOINLFG® (@bitcoinlfgo) September 14, 2024

This means that by not actually buying or moving real Bitcoins (just issuing IOUs), BlackRock may be able to keep the price of Bitcoin artificially low. However, these are only speculations, and there is no evidence supporting these allegations. 

ETF Store President Nate Geraci shared his opinion on this matter, stating that speculations around Bitcoin spot ETFs are coming from people who don’t understand how ETF products work. 

He also said he heard similar things about Gold spot ETFs in the past.

Whatever Coinbase is or isn’t doing, rest assured the ETFs 100% own underlying btc….

It’s real. And it’s spectacular.

That simple. Period. End of story.

Heard same thing back in the day w/ physical gold ETFs.

Anyone perpetuating this stuff doesn’t understand how ETFs work. https://t.co/1msZXUbevn

— Nate Geraci (@NateGeraci) September 14, 2024

In response, a Bitcoin maximalist said that owning Bitcoin on any crypto exchange, including the Coinbase platform, just means “your wife is sleeping with other men.”

Regardless, if you hold bitcoin on coinbase, then your wife also sleeps with other men

— Mr. Rootz (@MrRootz2) September 15, 2024

In response, the ETF Store president supported the comment of the Bitcoin maximalist and indirectly said that holding a Bitcoin spot ETF product is similar to holding Bitcoin on the Coinbase platform.

Bitcoin maxis are the best…

Nobody does it better. https://t.co/xc1xmHuWnv

— Nate Geraci (@NateGeraci) September 15, 2024

Read also: Crypto Sleuth ZachXBT Slams Circle (USDC) for Failing to Stop Bad Actors, Sparking Controversy

Coinbase is writing Bitcoin IOUs for BlackRock and they are suppressing the price: Rumours

 

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