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BlackRock cannot use client assets, like the Bitcoin in the ETF as collateral for their own corporate debt. That would be embezzlement/fraud. When they scoop up properties or companies, they are doing it on behalf of a fund, using client money to get client returns, not for the BlackRock corporation itself Sounds like classic confusion with Blackstone. BlackRock generally does not buy single family homes for their corporate balance sheet. BlackRock has a corporate balance sheet, retained earnings from fees and they do use debt/profits to buy things. But they use that money to buy other asset management firms, like GIP or Preqin and software. They don't use corporate profits to speculate on Bitcoin or buy single family homes. The only Bitcoin they "own" is the tiny seed capital used to launch the ETF, approx 10 million which is less 0.1% of the fund. The other $30 billion plus is strictly client money that BlackRock cannot touch for its own debts. Even if BlackRock sold their seed shares tomorrow, it would represent 0.02% of the fund. It wouldn't affect the other investors at all, it would barely be noticeable. Client assets are segregated. BlackRock earns fees on the AUM, and they can leverage their own revenue streams, but they cannot take out a mortgage against clients holdings in their ETF. Think of BlackRock like a massive parking garage. AUM is the cars parked there. BlackRock doesn't own the cars, they are in assets management. They can't take a loan out against your car, while it's parked there. But they can charge you a fee park there. Corporate assets is the parking fee you pay them. They use that money to build more parking garages, not to buy cars for themselves.
Yeah they are buying it with your etf money you fools! Behind the scenes they bought one of the biggest investment firms ever GIP so buy BlackRock and Bitcoin = Win Win