Analyst: BlackRock has Operated Bitcoin Nodes to Bolster Bitcoin Spot ETF Protection

Bloomberg ETF analyst Eric Balchunas revealed on September 24th on Twitter that BlackRock, actively operates a blockchain node to confirm the wallets on Coinbase Prime institutional custody service daily, containing the amount of BTC held by its ETFs. Balchunas stated that BlackRock just doesn't say it out loud because they have already suffered enough on-chain pollution.

IBIT Data Provided Only to In-House Clients to Avoid Potential Risks

Balchunas pointed out that due to the requests from many institutional clients, BlackRock needs to provide IBIT-verified data but "not publicly disclosed." The reason for doing so may be that BlackRock's on-chain infrastructure has received a large amount of on-chain pollution related to "sanctioned BTC and NFTs," and once disclosed publicly, it would attract more of these sanctioned digital assets into the BlackRock system, not only increasing the amount of on-chain pollution to be dealt with but also causing legal risks.

BlackRock Remains a Public Guarantee to Avoid FTX Tragedy

He added that as a leading industry player managing nearly 500 ETFs, BlackRock has never had any issues and has been ongoing for decades. This is also why BlackRock and other ETF issuers can gain the high trust of many American financial advisors, as these advisors are confident that their clients will not be deceived like FTX founder SBF.

Through ETFs, investors can allocate Bitcoin in the traditional financial markets, enhancing transparency and security, as well as building portfolio diversity and risk resistance. If, as Eric Balchunas mentioned, BlackRock has joined the ranks of maintaining the Bitcoin network, it will contribute to the decentralization and diversity of Bitcoin nodes.