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BlackRock now holds over $70 billion worth of Bitcoin through its ETF products, sparking a heated debate within the crypto community.

While major headlines call it bullish for Bitcoin, critics are calling it something else entirely — a silent Wall Street takeover.

A viral thread by crypto user Leshka.eth on X breaks down how BlackRock’s rising influence may strip Bitcoin of its original purpose: decentralization and financial freedom.

BlackRock Dominates the Bitcoin ETF Market

— Leshka.eth (@leshka_eth) June 4, 2025 Recent data shows that the 12 spot Bitcoin ETFs now collectively hold over 1.2 million BTC. Out of this, BlackRock’s iShares Bitcoin Trust (IBIT) alone controls at least 660,137 BTC — over half the ETF market.

That makes IBIT the largest crypto ETF by Bitcoin holdings, contributing significantly to BlackRock’s total $70 billion BTC exposure.

ETF Bitcoin Isn’t Real Bitcoin, Critics Say

But not everyone is celebrating this as a win. One of the biggest concerns? ETF holders don’t actually own Bitcoin.

All ETF Bitcoin is held in Coinbase Custody, meaning investors do not control the private keys, nor can they transfer, spend, or verify the Bitcoin independently.

Leshka.eth explains this distinction clearly — Bitcoin is now splitting into two paths:

  • Sovereign BTC: Held directly by individuals with full control
  • ETF BTC: Held by institutions, locked in centralized custody

While Bitcoin ETFs make it easier for traditional investors to gain exposure, they remove user control, undermining Bitcoin’s core principles.

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Can BlackRock Shape Bitcoin’s Future?

According to BlackRock’s own iShares Bitcoin Trust filing, the firm can decide which chain to support during a fork. This power could allow them to dictate which version of Bitcoin survives.

  • OFAC-compliant transactions
  • Miner pressure to follow government-friendly policies
  • Centralized narratives around Bitcoin use and utility

In addition, ETF giants like BlackRock could push for: This raises concerns that Bitcoin’s future could be shaped by politics and finance, rather than code and consensus.

The Real Risk: Bitcoin Becoming Digital Gold 2.0

Leshka.eth draws a parallel to how Wall Street tamed gold. He believes the same could happen to Bitcoin — turning it into a passive, price-driven asset, stripped of purpose and utility.

To prevent this, he urges holders to embrace self-custody — not ETFs.

“Wall Street wants Bitcoin’s brand and price, not its principles,” he warns.“Hold your private keys. Stay sovereign.”

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FAQs

Can BlackRock influence Bitcoin’s future through its ETF?

Yes, BlackRock’s ETF prospectus indicates the firm can decide which blockchain fork to support, potentially influencing Bitcoin’s direction.

What are the risks of holding Bitcoin via an ETF?

Holding Bitcoin through an ETF introduces counterparty risk and removes user control over the asset, contrasting with Bitcoin’s decentralized ethos.

Why do some advocate for self-custody over ETFs?

Self-custody ensures full control over Bitcoin holdings, aligning with the principle “not your keys, not your coins,” and preserves decentralization.