You guys asked for it! The last post about Wall Street suits apeing into crypto got a ton of reactions 👍
😘
So, I’m keeping my promise: let’s break down exactly what an ETF is (simply) and investigate the drama happening right now with BlackRock.
(Spoiler: No, BlackRock isn’t rug-pulling you, it’s actually more interesting).
SOOOO what is an ETF and why does it move the price?
Imagine you want a pizza $BTC 😋
Without an ETF: You go to the market, buy flour, knead the dough, find an oven, burn your fingers...😂 basically, you self-custody your coins and pray you don't lose your seed phrase.
With an ETF: You walk into a restaurant (BlackRock/Vanguard), pay cash, and they serve you a perfect slice🚬
How does this affect Bitcoin's price? It’s a direct link: When you buy an ETF share (a slice of pizza), BlackRock is legally obligated to go to the market and buy actual Bitcoin to back that paper.
Everyone buys the ETF?
🟢Funds vacuum up BTC supply
🟢Price goes to the Moon
People panic and sell the ETF?
🔴Funds are forced to dump BTC
🔴Price takes a nosedive
🚶♂️What is happening TODAY? (The Investigation)
You’ve probably heard the rumors: "BlackRock is pulling money out!" Let’s kill the FUD
The Situation Yesterday & Today: Yes, the market is bleeding. Bitcoin is chopping around $89k
Why?
Because we see record outflows from ETFs (especially BlackRock’s IBIT)
The Rumor: "BlackRock is dumping their bags on us!" 🤩🤩 COMMOOON! FALSE!
The Reality: Investors (retail and funds) decided to take profits after the massive 2025 pump. They hit the "Sell ETF" button. 🍷 And they're probably already vacationing in the Maldives on your dime.
When the crowd sells $300M+ worth of IBIT shares (like they did yesterday and today), BlackRock has to sell the equivalent amount of Bitcoin to give people their dollars back. They aren't "withdrawing" money to be evil. They are just executing sell orders.
🚬The "Big Bank" Theory
The fact that Morgan Stanley is launching funds for SOL and ETH, and Vanguard (who used to hate crypto!) is finally opening the gates to its $11 trillion empire is a massive signal.
We are seeing a classic "shakeout." Weak hands are panic selling forcing ETFs to dump price. Meanwhile, the whales and the banks are waiting for the bottom to scoop it up cheaper. Morgan Stanley isn't launching these funds right now by accident. ☺️