Original author: Heimi@Baize Research Institute
If BlackRocks Bitcoin spot ETF application is approved, it may trigger a new round of cryptocurrency craze, and trillions of dollars of institutional funds will flood into the market, causing the price of BTC and altcoins to rise sharply.
This article will look at some projects that could benefit directly from BlackRock’s Bitcoin Spot ETF.
Note: This article is for information sharing only. The author has no interest in the projects mentioned and does not make any endorsement. DYOR
Why is BlackRock able to exert such tremendous energy?
Blackrock is the worlds largest asset management company, currently managing approximately $9 trillion in assets.
This month, BlackRock bucked the trend and applied for a Bitcoin spot ETF, which was considered proof that “institutions have once again entered the crypto market.”
To put it simply, let’s say you want to invest in Bitcoin. Instead of signing up for a cryptocurrency exchange yourself, depositing money to buy Bitcoin, and paying taxes on each transaction, buy BlackRocks Bitcoin Spot ETF and theyll do it for you. Youll receive a receipt proving your ownership of the ETF and then track the value and performance of Bitcoin. In addition to using a Coinbase custody account to manage these Bitcoins, BlackRock cannot use your Bitcoins to do evil. All they can do is provide you with more cost-effective services.
Whats really interesting, however, is BlackRocks relationship with the U.S. government and the Federal Reserve.
Who did the Fed put in place to manage the troubled assets they took over from Bear Stearns in 2008?
The answer is BlackRock.
Who did the Fed turn to in 2020 when it wanted to buy some corporate bonds to help prop up the economy?
The answer is BlackRock.
Who will the FDIC turn to in 2023 to help account for the assets of Signature and Silicon Valley Bank?
The answer is BlackRock.
That’s why Bloomberg senior ETF analyst Eric Balchunas said BlackRock’s application for a Bitcoin spot ETF is “a big deal” for the entire crypto market.
In addition to entering the encryption market through Bitcoin spot ETFs and seizing the traffic and handling fees brought by Bitcoin transactions, we can also find through the annual report that BlackRock is also interested in the tokenization of RWA (real world assets), especially It is the tokenization of stocks and securities.
What projects might benefit from this?
1. Bitcoin L 2 Ecosystem headed by Stacks
Stacks can be said to be the most prosperous Bitcoin L 2 network in the current ecosystem.
Similar to the Rollup L 2 network designed to expand Ethereum, Stacks also packages multiple transactions into a batch and submits them to the Bitcoin network for verification, thereby effectively reducing the number of transactions on the Bitcoin network , improve overall performance.
Stacks uses a proof-of-transfer (PoX) consensus mechanism. Miners need to spend Bitcoin to mine the native token STX, which allows Stacks to borrow the security of the Bitcoin network and allow Bitcoin to be utilized on dApps in the Stacks ecosystem. (It’s worth noting that STX was the first token to receive SEC approval in 2019)
As the Bitcoin NFT protocol Ordinals kicked off the explosion of the Bitcoin ecosystem, handling fees soared, and Stacks returned to the public eye again. The popularity has continued to rise in the past two months, and the price of STX has increased more than 4 times in more than a month.
Therefore, the approval of BlackRock’s Bitcoin spot ETF may provide a boost to STX and the broader Bitcoin L2 ecosystem.
In addition, Stacks will introduce five important features in its latest upgrade Nakamoto in Q4 2023 that are expected to be additional catalysts for STX prices, including sharing network security with Bitcoin and the creation of a decentralized Bitcoin-anchored currency SBTC.
2. Projects mentioned by BlackRock: Energy Web
Energy Web is an organization dedicated to accelerating the decarbonization of the global economy through open source software and blockchain solutions. It mainly solves two key challenges: leveraging distributed assets such as solar systems, batteries, electric vehicles, and charging piles to achieve more efficient and more efficient Sustainable grid balancing; bringing transparency to supply chains for emerging green products such as sustainable aviation fuel. The group has inked deals with a number of large energy producers and fossil fuel companies over the years, including publicly traded Shell and Volkswagen.
Its mainnet, Energy Web Chain, was launched in 2019. It is an EVM enterprise-level public chain that adopts the Proof of Authority (PoA) consensus mechanism. Blocks and transactions are verified by pre-approved participants (usually partner companies). Act as a manager of the system. But both enterprises and individual developers can deploy dApps on the network, such as energy trading-themed DeFi, and any user can use it. However, its native token EWT only serves as the most basic validator reward and Gas token, and has not been given more utility.
This month, the organization announced that it will launch a Polkadot parachain called Energy Web X. The simplest way to understand it is that the two blockchains share a token. The idea of Energy Web Small token holders can stake their tokens to trusted nodes to earn income.
It is worth noting that when BlackRock launched the Bitcoin Private Trust last year, it mentioned that Energy Web was helping to increase the transparency of Bitcoin green mining. After the press release was issued, the price of the EWT token rose by 24%. Therefore, the approval of BlackRocks Bitcoin spot ETF may have a positive effect on Energy Web, the largest decentralized energy ecosystem, and the adoption of more energy companies will also have a further impact on the price of EWT. Promoting effect.
3. RWA tracks that BlackRock is interested in: Polymesh, Realio Network
As mentioned in the first part of this article, BlackRock is interested in tokenizing RWA.
Polymesh is an institutional-level L1 network tailored for regulated assets such as security tokens. The token standard is inspired by ERC-1400 and provides more functionality and security to facilitate the on-chain assets. Issuance and management. Transparency and compliance are among the highlights of the network, with all issuers, investors, stakers and node operators required to complete identity verification.
POLYX is the native token of Polymesh and is classified as a utility token under the country’s laws according to guidance from the Swiss financial regulator FINMA. POLYX has multiple functions such as staking, governance, creation and management of security tokens.
Realio Network was formerly a P2P digital asset issuance and trading platform focusing on real estate private equity investment. It has currently established an interoperable and scalable L1 network based on Cosmos SDK, focusing on the issuance and management of RWA tokens. , also provides KYC/AML compliance, investor certification and other tools to meet compliance requirements.
Currently, its flagship product Realio.fund investment platform has been launched, providing multi-chain token issuance tools, fully automated compliance processes and other functions, where users can invest in cryptocurrency more safely.
Realio Network adopts a dual-token proof-of-stake model, RIO and RST, with various functions such as staking, governance, and key management.
Polymesh and Realio Network, as the two most powerful projects on the RWA track, are bound to benefit from the wave of approval of the BlackRock Bitcoin Spot ETF.
4. The strong will always be strong: Take Render and GMX as examples
If BlackRocks Bitcoin spot ETF application is approved, it may trigger a new round of cryptocurrency craze, and projects that have performed well this year may benefit from this, such as Render and GMX.
Render Network is a blockchain-based GPU rendering network designed to connect idle GPUs with creators who need additional GPUs to maximize resource utilization. As an infrastructure, rendering has huge business scalability. At the same time, it is also part of the narrative of artificial intelligence and the metaverse, so it is one of the benchmarks in the Depin (Distributed Physical Infrastructure Network) track.
Its native token RNDR is one of the strongest rising tokens this year and has completed a good rebound in the bear market. The reason may be the partnership between its parent company OTOY and Apple. Apple’s official product promotion videos have appeared many times on Render Network Logo. Recently, RNDR has adopted a new token economics model called “Burn and Mint” (BME), making it a highly deflationary token, which may serve as a catalyst for its price to continue rising in the future.
With the U.S. SEC suing centralized cryptocurrency exchanges Coinbase and Binance this month, sustainable DEXs are gaining more users. Traders trying to get rid of CEX and KYC are looking for a new home on the sustainable DEX track.
GMX, the leading project with a total transaction volume of over US$133 billion, is likely to continue to grow as a result.
risk warning:
According to the Notice on Further Preventing and Dealing with Speculation Risks in Virtual Currency Transactions issued by the central bank and other departments, the content of this article is only for information sharing and does not promote or endorse any business or investment behavior. Readers are requested to strictly abide by the laws and regulations of their region and do not Engage in any illegal financial practices.
