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BlackRock

<h4><strong>This arrangement allows BlackRock to borrow Bitcoin, including for short-selling, without proving a 1:1 holding ratio.</strong></h4> 
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     These transactions settle in 2 to 30 days, all in cash, not Bitcoin. Off-chain trades occur outside the blockchain, remaining invisible on the public ledger.
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<h5><strong>BlackRock’s Off-Chain Bitcoin Borrowing Raises Transparency Issues</strong></h5> 
<p>This method offers several advantages, including increased transaction speed and reduced fees. However, it also brings about transparency concerns, particularly regarding large-scale transactions involving significant market players like BlackRock.</p> 
<p>By utilizing off-chain transactions, <a href="https://www.altcoinbuzz.io/?s=blackrock" target="_blank" rel="noopener">BlackRock</a> can borrow Bitcoin from Coinbase without triggering the same level of scrutiny as on-chain transactions. This capability is especially pertinent when it comes to short-selling. Short-selling is borrowing, selling at market price, and repurchasing at a lower price for profit.</p> 
<p><img decoding="async" class="wp-image-140799 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/ngfhfdgvd-1-300x199.jpg" alt="" width="588" height="390" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/ngfhfdgvd-1-300x199.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/05/ngfhfdgvd-1.jpg 394w" sizes="(max-width: 588px) 100vw, 588px"></p> 
<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/TylerDurden/status/1790941726544478602" target="_blank" rel="noopener">X</a></strong></h6> 
<p>The ability to execute these trades off-chain means BlackRock can conduct substantial short-selling activities. It doesn’t need to provide proof that it holds equivalent Bitcoin reserves. The settlement period for these off-chain transactions ranges from 2 to 30 days, providing flexibility for BlackRock to manage its trading strategies.</p> 
<p>During this time, the borrowed Bitcoin can be used for various purposes, including speculative trading or hedging. The final settlement, conducted in cash, further simplifies the process by eliminating the need to return the exact amount of Bitcoin borrowed. This cash settlement mechanism allows for easier balancing of accounts and reduces the complexity associated with handling large volumes of <a href="https://www.altcoinbuzz.io/?s=bitcoin" target="_blank" rel="noopener">Bitcoin</a>.</p> 
<h5><strong>More About Blackrock &amp; Coinbase</strong></h5> 
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     While this arrangement offers operational advantages for BlackRock and potentially other institutional investors, it raises significant concerns about market transparency. Additionally, it raises concerns about the potential for market manipulation.
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 <img decoding="async" class="wp-image-140802 aligncenter" src="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/jklo-300x249.png" alt="" width="582" height="483" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2024/05/jklo-300x249.png 300w, https://www.altcoinbuzz.io/wp-content/uploads/2024/05/jklo.png 394w" sizes="(max-width: 582px) 100vw, 582px">
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<h6 style="text-align: center;"><strong>Source: <a href="https://x.com/TylerDurden/status/1790945019744129279" target="_blank" rel="noopener">X</a></strong></h6> 
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<p>This discrepancy can lead to a distorted view of Bitcoin’s actual supply and demand dynamics. Moreover, the ability to short-sell large amounts of Bitcoin without immediate on-chain accountability can impact Bitcoin’s price volatility.</p> 
<p>If BlackRock, or any other major financial institution, engages in substantial short-selling activities, it could exert downward pressure on <a href="https://www.coingecko.com/en/coins/bitcoin" target="_blank" rel="noopener">Bitcoin’s price</a>. This could potentially affect the broader market and retail investors</p> 
<p><a href="https://www.patreon.com/altcoinbuzz" target="_blank" rel="noopener"><img decoding="async" class="aligncenter wp-image-124240" src="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg" sizes="(max-width: 714px) 100vw, 714px" srcset="https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-300x37.jpg 300w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1024x127.jpg 1024w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-768x95.jpg 768w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-696x86.jpg 696w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1-1068x132.jpg 1068w, https://www.altcoinbuzz.io/wp-content/uploads/2023/09/image-7-1-1.jpg 1197w" alt="Coins" width="714" height="88"></a></p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/blackrocks-secretive-bitcoin-transactions-with-coinbase/">BlackRock’s Secretive Bitcoin Transactions with Coinbase</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

BlackRock’s Secretive Bitcoin Transactions with Coinbase

Altcoin Buzz

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