Asset manager BlackRock has filed an application with the SEC to acquire shares of Bitcoin ETFs for its own funds. The firm plans to do this through its Strategic Income Opportunities Fund. The fund’s ETF has gained the lead in market share amongst the new spot Bitcoin ETFs and has done record-breaking levels of trading volume. This move would allow BlackRock to make investments directly into these ETFs, giving clients of this fund direct exposure to Bitcoin.

Cetera Financial Group will now let its advisors include four bitcoin ETFs into client portfolios. The approval of these ETFs, offered by BlackRock, Fidelity, Invesco, and Franklin Templeton, for client portfolios marks another important step in adoption with established wealth managers’ support. Cetera will provide educational training for its financial professionals on the Bitcoin ETFs. As of now, the firm manages $190 billion in assets, and it plans to continually assess the implications of bitcoin ETFs for its clients.

Policymakers' opposition to Bitcoin, especially Bitcoin ETFs, is more rooted in concerns about the financial system's stability than investor protection or criminal use. Bitcoin acts as a stark signaling device, highlighting problems with excessive government spending and monetary policy. The ETFs also provide an easy ‘exit ramp’ for all people, which could prove to be problematic for a regime reliant on excessive government spending.

The discussion centers around the evolution of smart contract blockchains over the next decade, reflecting on their origins rooted in cypherpunk values such as censorship resistance, open-source principles, and the aspiration for a democratic internet. However, as these technologies gain traction in the mainstream market, they are increasingly influenced by different priorities, including performance, cost, profitability, and compliance. The author notes that the initial vision for smart contract blockchains is often overshadowed by their commercial applications. For instance, while Bitcoin was conceived as a peer-to-peer electronic cash system, it has transformed into a financial asset, exemplified by products like Bitcoin ETFs. This shift indicates a broader trend where the original ideals of decentralization and permissionlessness are being reinterpreted in light of market demands. As smart contract platforms evolve, many emerging use cases—such as fiat stablecoins and decentralized finance (DeFi)—are not fully aligned with the foundational principles of decentralization. Instead, they leverage the underlying blockchain's capabilities for interoperability and settlement while often sacrificing some degree of decentralization. This raises questions about the future value proposition of major cryptocurrencies, as their roles become more abstracted in various applications. The author expresses concern that early adopters may feel disillusioned by these changes, but suggests that this is not the end of the movement. Rather, it marks a transition into a new phase where commercialization of crypto technologies can lead to broader impact. The commercialization process, while potentially diluting original ideals, can also facilitate the dissemination of innovative ideas to a wider audience. The author emphasizes the importance of adapting to market realities and finding ways to influence the direction of commercialization. For example, compromising on decentralization to achieve scalability can enhance user experience and accessibility, ultimately allowing for a future return to more decentralized models as the technology matures. Drawing parallels with the creative scene in Montréal, the author reflects on how cultural movements often blend with mainstream markets, leading to both commercialization and the dilution of original values. However, some artists manage to navigate this landscape successfully, balancing their roots with broader appeal, which can amplify their impact. In conclusion, while the commercialization of crypto may seem like a departure from its foundational values, it presents an opportunity for significant impact. The author plans to explore specific examples of how this opportunity can manifest in future discussions, suggesting that the journey of crypto is just beginning, despite the challenges posed by mainstream market dynamics.