Blackrock's Jaw-Dropping Bitcoin Move Could Rocket the Price to $1 Million - Brace Yourself!

I finally know what it feels like to be a teenage girl about to go to her first Taylor Swift concert. The anticipation and thoughts: "What song will she play first? Is she going to play Love Story? Do I wear my Taylor Swift T-shirt? Oh, wait…I know; I'll ask ChatGPT.

A stylish romper…of course! Thank God for ChatGPT. I have every answer I need right here on my phone."

As a middle-aged male, it's hard for me to get giddy about too much. But Larry Fink has gotten me excited. Not in the Viagara kind of way…in the Bitcoin symbol as eyeballs cartoon kind of way. I listened to the Larry Fink interview on repeat…

Is $1 million Bitcoin inbound?

If gold's market cap is $11 trillion and Bitcoin's market cap is $600 billion, Bitcoin would be 18x in value if it equals gold's global capitalization. Currently trading for $30,000, every Bitcoin would be valued at $540,000. Combine this with speculation and FOMO, and the price can accelerate to $1 million per Bitcoin.

Obviously, I will do the same thing my hypothetical 15-year-old female self would do and consult the Oracle, ChatGPT. You won't believe what it revealed.

Do you see? Even ChatGPT, which is as smart as Albert Einstein, can envision a $1 million Bitcoin price. Do you think you are smarter than Albert Einstein?

Don't Underestimate Greed

I'm just like the next ordinary guy. I love yacht parties with supermodels and expensive champagne served out of glass. When my Lamborghini SUV is in the shop, I "deal" with driving my kids around in my Porsche Panamera. Heck, I'll even fly business class instead of first class if the flight is less than three hours.

Oh wait… that's not the ordinary guy. And these traditional finance thought leaders don't become billionaires by thinking like ordinary people. So, what's the game? And, should we look forward to a $1 million Bitcoin if the financial elite ushers it in?

I don't have the answers to these questions, but I have some thoughts.

Theory #1- The financial elite already have or are building their positions in Bitcoin, and now they can pump their bags to retirement investors.

The top 5 US companies by market cap are Apple, Microsoft, Google, Amazon, and Nvidia. Here's some interesting data: Blackrock is Apple's second-largest institutional holder, with 6.58% of the outstanding shares. Coincidentally (?), Blackrock is the second largest Microsoft holder (7.23% of outstanding shares). And Blackrock is also the second largest Google holder (6.23% of outstanding shares).

I know you aren't going to be surprised to learn that Blackrock is also the second-largest Amazon institutional shareholder (5.92% of outstanding shares). Larry's investment company is the second-largest Nvidia institutional holder, with 7.44% outstanding shares.

Let's imagine that Blackrock is the second-largest Bitcoin holder. We know that Satoshi's wallet holds 1.1 million BTC. If Blackrock held 75% of what Satoshi has, that would put them at 825,000 Bitcoin. I am not saying that Blackrock holds this or any amount of Bitcoin directly.

A $25 billion investment would secure 825,000 Bitcoin at today's prices. Remember, Blackrock's position in Apple alone is valued at $198 billion, so it's not a far reach that Blackrock could invest $25 billion in Bitcoin.

Let's take the scenario where Bitcoin equals gold's market cap. If the $25 billion investment does an 18x, it would be worth $450 billion. That could be a good boost to Blackrock's performance and bottom line. And I'm guessing many in the C-Suite will also have their personal BTC allocations.

Theory #2- Bitcoin and crypto's volatility means heavy trading volume. ETF fees will boost earnings. Traditional finance has a knack for manipulating markets (playfully called spoofing) they control, and this can be a payday.

Let's imagine Blackrock has $450 billion worth of Bitcoin under management. If they charge 0.25% annual management fees, this equates to $1.125 billion yearly. We already know that investors pay Grayscale 2% in management fees for their Bitcoin trust (currently trading below net asset value). Blackrock can come in like a knight on a white horse and rake in the fees…earning more when Bitcoin's price increases.

I'm not claiming that Blackrock manipulates markets, but we know other traditional finance players like JPMorgan have been busted a couple of times for manipulating precious metal markets. Imagine what they can construct with the massive amount of liquidity and limited supply of the Bitcoin market.

Unfortunately, I don't understand how this is orchestrated, but it seems possible when considering futures, leverage, ETF, and actual possession of Bitcoin.

Theory #3- They want to democratize Bitcoin and help protect the American public from monetary debasement and inflation.

Maybe I have it all wrong. It's possible that these traditional finance geniuses are trying to help us ordinary investors. Buying Bitcoin today is an awful experience. The government's lack of regulatory oversight has meant that shady individuals have run shady exchanges and not acted in their client's best interests.

It's unfair and unrealistic to think that people over 40 will suddenly be able to take custody of their wealth after depending on banks and institutions their entire lives. An ETF gives every investor with a Schwab account or any other stock trading account the ability to own Bitcoin without worrying about whether the exchange will take it or if they need to store it in a wallet backed by a piece of paper.

And it will lower fees and reduce the spread between the bid/ask price. Retirement investors may have options in their 401Ks to invest in Bitcoin, which could be great! Maybe these traditional finance fat cats deserve their paychecks, mansions, and private jets because they are looking out for the collective best interest.

What I think

Realistically, it's probably a combination of all three of these theories. I imagine everyone who has changed their tune publically about Bitcoin has done so after acquiring their individual or institutional bags. And because Bitcoin has an army of evangelists (myself included), it's easy to see such a limited quantity asset skyrocket in value.

Finally, what person can look in the mirror and put on their $100,000 watch and not imagine they are doing a great deed for humanity? The human brain can justify anything, which is why people are so great at adapting.

$1 million Bitcoin may sound crazy and outlandish. It could be. But I remember when Bitcoin was $200 when I first heard about it, and in less than ten years, it's trading for over $30,000. I wish Blackrock had a Bitcoin ETF back then to trade the asset easily.

This information should not be taken as investment advice. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing. I am not a financial planner. I do own Bitcoin and Grayscale Bitcoin Trust.

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