While Bitcoin started the new week with a decline, there are many claims about the reasons for the decline. While some cite the Trump assassination, others claim that Coinbase provided Bitcoin IOUs to BlackRock through its cbBTC, thus decreasing the price.
As the BlackRock Coinbase allegations continue, Bloomberg ETF analyst Eric Balchunas refuted these claims.
Balchunas said the decline in Bitcoin was not caused by BlackRock or spot ETFs, but by long-term Bitcoin holders selling.
In his X post, Balchunas denied rumors that Coinbase issued Bitcoin IOUs for BlackRock’s spot Bitcoin ETF, saying the drop in price was due to long-term Bitcoin holders, known as “HODLers,” rather than external manipulation by BlackRock or the ETFs.
“I understand why these theories exist and why people want to scapegoat ETFs. Because they don't think HODLers are sellers. But in reality, they are. The decline is coming from inside the house. All ETFs and BlackRock have done is pull the price of Bitcoin off a cliff over and over again.”
Like Balchunas, ETF Store CEO Nate Geraci also denied the Coinbase BlackRock claims. X noted in his post that Coinbase holds a 1:1 ratio of Bitcoin to physical ETFs, ensuring the underlying asset is properly backed. “People who repeat these kinds of claims don’t understand how ETFs work,” Geraci said, likening the situation to similar claims made when gold physical ETFs were launched.
*This is not investment advice.