Katie Wood: BlackRock May Be To Blame For Bitcoin Downturn

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The decline in the interest of institutional investors in bitcoin is due to concerns about the non-environmental friendliness of the cryptocurrency and tweets by Elon Musk. This opinion is shared by the head of ARK Investment Katie Wood, writes MarketWatch. According to her, institutionalists “suspended” the purchase of bitcoin due to growing market fears.


“Many institutions have placed a purchase [биткоина] to pause. This is due to ESG movement and amplification [давления] from the side of Elon Musk … ”, – said Wood at the Consensus 2021 conference.


However, the main culprit behind the unrest is not Elon Musk. Wood believes that the head of Tesla probably received calls from institutions after the electric car manufacturer began accepting payments in Bitcoin.


“Elon probably got a few calls from institutions,” Wood said.


Moreover, Wood even hinted who exactly could put pressure on Musk. According to her, fears around the non-environmental friendliness of bitcoin could be fueled by the largest investment company – BlackRock.


“I noticed BlackRock is Tesla’s third (largest) shareholder and Larry Fink is CEO. He focuses on ESG and especially climate change.


Wood is confident that BlackRock received “some complaints” from major shareholders in Europe after Tesla decided to accept Bitcoin as payments.

Earlier, BlackRock Chief Investment Officer Rick Reeder hinted that cryptocurrencies are more functional than gold or Treasuries. Moreover, in January of this year, BlackRock submitted two applications for the new fund. The peculiarity of the fund is that it can use financial instruments based on the value of bitcoin. However, the fund did not progress further than the application.

Note that Katie Wood’s statements appeared after the crypto fund managed by ARK Investment bought bitcoin for almost $ 20 million.The investors were 12 people, and the minimum entry threshold was $ 1 million.

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