At the beginning of the year we witnessed a drama, I would say more than drama, a very big theater around the approval of bitcoin spot ETFs and a lot of really incredible data has emerged, but there is something that almost no one has talked about and The thing is that immediately after the next day that these ETFs are approved, Larry Fink appears on the most important television networks in the United States, in the finance economics programs.
But they know who owns all those chains, those who are awake will know that it belongs to Black Rock and Black Rock is the largest investment fund in the world and is a shareholder in almost all of the largest companies in the world and is also one of the larger shareholders / owners of the large telecommunications chains, so when Larry Fink appears, it does not necessarily mean that he is invited, I think he simply picks up the phone and says “I'll talk tomorrow” very easy to understand no.
The chains are tools for him to give messages and this message that he gave is very impactful; There are very important things that no one is talking about but that have to do with our future and above all we have to know what the intention is in order to be prepared and also know how to make decisions that do not harm us.
Larry says in this interview that “in 2012 we said that ETFs, which are exchange-traded funds, would be the next engine of fixed income, you heard right, engine of fixed income, what do you understand by “fixed income”, I understand by fixed income a kind of fixed income and I want to ask you, do you believe that an investment fund has provided someone with a fixed income, so there is something very strange here, because no investment instrument in the stock market can promise you a fixed income, because A fixed income means that every month you would have to receive the same money, which is very strange.
Because I don't even think it's legal for a company to promise if they buy its stock that it will earn the same amount each month, so what Larry says is totally ridiculous, it will be something that will be referred to in the future.
He also said “people in the industry ridiculed us and today the fixed income markets are totally imbued with ETFs”, again he talks about fixed income, then what does he say “today we have 3.5 trillion dollars in ETFs” that is, after They ridiculed him so much today they manage 3.5 trillion dollars, “this week we launched the bitcoin ETF, “if we could create an ETF from bitcoin, imagine what we could do if we make ETFs of all financial products, we are halfway there of the ETF revolution, everything is going to be made ETF.”
If any of you do not know what an ETF is, an ETF means Exchange traded fund, exchange is a stock market, traded is traded and fund is fund, that is, any fund that is traded on exchanges, for example, a fund that imitates the value of Gold, another fund the value of oil, another fund a set of stocks, for example, technology stocks.
What does this mean, that you don't go and buy directly, for example, the shares of Google, Facebook, Amazon, etc., but rather you put your cash in a company like Black Rock, for example, that it goes and It buys for you, it makes that package, in addition, it charges you a commission and a very high commission, that is, it does not matter if you win or lose that index that they believe, they will charge you the commission of the total money that you have.
And point number two is that you are not the owner of the underlying asset, that is, in the past when a person went and bought a share, they were given a certificate with their name with the signature of the manager of the company of the share, etcetera etcetera, you had a document in your hand, today in many countries that has been canceled and it is purchased through banks, but an ETF is not even that, that is, you do not have any type of ownership over the underlying assets of the ETF, if, for example, the financial institution collapses, you will lose all your money.
On the other hand, if you had bought shares in the past and you had that paper, that paper was worth a lot of money. There are people who, for example, bought IBM shares when the company was very small about 50 years ago and just by having that piece of paper they later became a millionaire. because I had that piece of paper at home, that is, I did not depend on a financial company or a bank, which can also close or confiscate your assets.
Imagine that Larry says that in the future everything is going to be ETFs.
stay free
well said dude