How BlackRock is Secretly Taking Over The Crypto Market | BlackRock Tokenized Fund Explained

This is everything you need to know about BlackRock's $100 million tokenization fund they just announced. Now, as you guys know, I currently run a $25 million hedge fund specific in blockchain and crypto. So this is massive news for our specific hedge fund and what we are doing right now. And we've been following BlackRock for the past few years as they've announced ETFs and more tokenization products. Now, if you don't know who BlackRock is, BlackRock is the largest asset manager in the world with roughly $10 trillion dollars under management. Yes, trillion with a T. BlackRock with Vanguard and State Street effectively run the entire free world. Okay. These are the most powerful people on planet Earth. And Larry Fink, who runs BlackRock, the most powerful company on Earth, is saying that they want to tokenize pretty much everything. So first off, if your little antennas aren't going off yet, they should be right now because this is massive news across the crypto world. Just a few months ago, the SEC approved 11 spot buying ETFs, with BlackRock being the main one, followed by Fidelity. And we are seeing roughly Roughly $500 million a day flowing into the Bitcoin spot buying ETFs. Now, a few months later, on March 19th, BlackRock just filed their public SEC filing disclosing that they were launching a Reg D 506 fund, which if you don't know, in fund launch, these are very common hedge funds that are launched right now. For example, our fund currently is a Reg D 506 fund, BlackRock's is a 3C7 fund, and both are used by the largest hedge funds in the world. Now, they didn't disclose how much money would go into this fund, but they did a seed investment of $100 million, and they actually made the public wallet address available so people could go see that there was $100 million sitting in that address. And funny enough, the crypto community went on fire about this. They were sending meme coins and tokens and donations to this address with all sorts of funny quotes and things about Larry Fink and BlackRock. Across the board. And some of them were pretty inappropriate. So we're not going to share them on this channel today, but you can go look them up yourself. Now, this fund is particularly attractive to investors because unlike the ETFs, where ETFs can allow what's called non-accredited investors or everyday investors to invest into ETFs, under a Reg D 506 fund, you have to be a qualified purchaser to invest, which means you have to have a minimum of a $5 million net worth in excluding your primary residence to even invest in these funds. These are very exclusive funds usually held for the ultra wealthy. In another article posted by Forbes, BlackRock said that they wanted to tokenize their entire $10 trillion portfolio. So what does this mean to tokenize something or to put it on a blockchain? So for example, let's say I'm going to send you $10,000 overseas. Now, currently, if I go to a bank and I use the Fed system, it takes 3 or 4 or 5 days. They got to change the money and whatever, and I send it to you overseas. And I have to use what's called centralized players to do that. I have to use a bank, the Federal Reserve, the SWIFT system, all centralized things to send you money. Now, the risks with centralized exchange of money is what if Wells Fargo got hacked or the SWIFT system, there was an error rate? Things can happen and be disrupted along that line. On a blockchain, it's the exact opposite. They call this decentralized. Instead of having one computer at Wells Fargo that verifies this transaction, we would have 10,000 independently held computers around the world that are all ran by different people on different servers, on different platforms. And in this example, all that would have to happen is 51% of those computers would have to validate Bridger has $10,000 and is sending it to you. And once 51% of those computers validate that, it sends to you and then you now have $10,000. And then those computers update the public ledger and all 10,000 computers can see that you now have $10,000 and it left Bridger's wallet to yours. Now on many blockchains, these computers or nodes are also called miners. They help validate transactions. If you've ever heard of like a Bitcoin miner, what they do is they validate the transactions from around the world. And for validating these transactions, the blockchain rewards them with a little token or a coin, or in this example, a Bitcoin. And that's how miners are paid to pay for electricity, and all the stuff to validate transactions. So if you were trying to hack a blockchain, in that example, you would have to hack 5,000 different computers that are independently held on different countries, different servers around the world. To hack into Wells Fargo, you just have to hack one computer. So when BlackRock says they want to tokenize things or put things on blockchains, what does that mean? So let's say, for example, BlackRock owns a building, and that building is at the public county filing records that shows that BlackRock owns a building. They want to put that onto the blockchain where 10,000 independent computers would validate that they own that building. Now you might say, well, it's just, it's the same thing whether the county posts it or the blockchain posts it. BlackRock still owns the building. But what happens next is actually really cool. So a few things can happen. Number one, BlackRock can have fractional ownership in that building. What they could do is break that building up into 20,000 individual pieces. And people like me and you could come buy a piece of all these buildings and it would all be validated on a blockchain in a fraction of a second. Additionally, it's pretty cumbersome to sell buildings, to go to the county, to have a title company record all this stuff. If it's on a blockchain, you could sell a building in a fraction of a second as long as the buyers and sellers come and agree and a blockchain validates it. You could day trade skyscrapers, you could day trade buildings, you could buy it, you could sell it, you can move it, and assets would move a lot faster on a blockchain. Do you see the future of how impactful this is around the world? It takes us out of the Stone Age with title companies, other things, and brings us into the new age of blockchain technology or tokenization. Now what's cool is this is not a brand new concept. There are hundreds of companies right now around the world developing the technology and blockchains to do this right now. And actually BlackRock has already invested into one of them named Securitize. According to Ledger Insights, Securitize is going to act as their transfer agent, tokenization platform, and their placement agent for this specific fund that just got $100 million into it. In another article, BlackRock also disclosed they would like to launch a stablecoin, or a coin pegged to $1, and become the marketplace for all those transactions to happen. And finally, BlackRock in a public statement said this, quote, tokenization remains a key focus of BlackRock's digital asset strategy. So again, I currently run a $25 million hedge fund specific to blockchain and digital currency, and this is massive news because when the big players, the insiders of Wall Street get into this space, what happens is they bring a lot of money with them. On the date of this filming, the total crypto market cap is around $2.6 trillion. If BlackRock, Fidelity, JP Morgan brought even just a fraction of their assets to blockchain, it would make that total market cap go from $2.6 trillion to maybe over $10 or even $20 trillion. So as a firm right now, we spend a lot of time researching the companies and players that are building technology that'll benefit this next wave into the blockchain space. We're seeing a lot of growth right now in blockchain and AI, blockchain and genetics, blockchain and tokenization like what BlackRock's doing. And there's incredible companies building technology underneath them that we believe will heavily benefit from this transfer of money over the next 5, 10, or 15 years. We kind of feel like we're sitting in 1996 when the internet just got created. All these companies are coming out. Yes, there may be some spam. Yes, there's going to be companies that fall apart. But overall, the underlying technology is phenomenal and this tidal wave is going to be massive over the next 10, 15, 20 years. And finally, this all comes right before the next Bitcoin halving on April 19th. While we're still waiting for the pending Ethereum ETF ETF approvals, and we just had a major Dencun update to the Ethereum blockchain. And all of those things have been major bullish indicators in the past. So comment down below what you think. What meme coins you going after? What are you guys investing into? What technologies you're finding that are valuable right now? And I'll see you next episode. Peace.