BlackRock, the world’s largest asset management firm, has been making waves in the crypto space lately. However, its recent advertisement for the iShares Bitcoin Trust (IBIT) ETF, a fund designed to expose institutional investors to Bitcoin (BTC), has become the center of attention.

The BlackRock Ad Controversy

While the ad highlights Bitcoin’s appeal, offering an introduction to the cryptocurrency and its decentralized nature, one part raised a storm of criticism — the disclaimer suggesting that the 21 million BTC supply cap could change.

Many crypto players consider the coin’s 21 million supply cap as the cornerstone of the network, a feature setting it apart from traditional currencies in ways other than simple supply. Hence, when a BlackRock ad mentioned a disclaimer about a possible change in the cap, there was criticism of the ad and the company’s influence on BTC’s fundamental principles in various crypto groups.

Many Bitcoin advocates are highly protective of the asset’s fundamentals, and the suggestion that altering these fundamentals is possible has caused alarm. They were amazed that such a suggestion could come from a firm as influential as BlackRock.

BlackRock’s Intentions or Legal Caution?

According to analysts, BTC’s supply cap changes will need overwhelming consensus amongst the coin’s decentralized network of miners, developers, and node operators. Most people currently view this situation as highly improbable.

Although the community’s reaction has been swift and decisive, some experts believe the disclaimer may not indicate BlackRock’s intentions to change the coin’s code but rather a legal protection. Meanwhile, Bitcoin developer Adam Black commented on the issue, saying the statement likely came from BlackRock’s legal team to protect their firm from future litigation.

Black argued that BlackRock is an institutional investor subjected to regulatory scrutiny, and its disclaimer was a way out should there be future changes in BTC’s code, a clear indication that the change might happen. He further asserted that the asset manager didn’t imply the opposite, as Bitcoin’s protocol has no chance of getting modified.

However, this view did little to assuage fears among those considering the coin’s non-inflationary supply cap a non-negotiable feature. Such a disclaimer was a reminder of how mainstream financial entities might try to exert their influence over a system meant to be decentralized and impervious to central control.

BlackRock and Bitcoin’s Future

With several trillion dollars worth of assets under its management, the popular asset management firm holds a heavy influence in financial markets, and its presence further lends Bitcoin legitimacy as a mainstream asset class. Nevertheless, many crypto community players are wary of mega financial institutions such as BlackRock gaining too much control over Bitcoin’s market dynamics.

They fear that such firms might seek changes in regulations or other changes in the Bitcoin ecosystem that favor profits over decentralization. While the BlackRock Bitcoin ETF offers exposure to the asset, critics say such products come with the risk of distorting Bitcoin’s price and introducing centralized control mechanisms.

Can BlackRock Change BTC’s Circulating Supply Limit?

Another contentious aspect of this debate is whether BlackRock or anyone else could change Bitcoin’s supply cap. In theory, deciding to change the Bitcoin protocol would need consensus from most network participants.

The change would be impossible without fracturing the network because of how firmly the Bitcoin community has kept the supply cap at 21 million. But the mere implication from BlackRock (even as a legal protection) that the supply cap might change has caused a massive uproar in the global crypto community.

The increasing involvement of the leading asset manager in the cryptocurrency space underlines the near overlap between preserving the principles of Bitcoin and the need to integrate Bitcoin into traditional financial systems. As more institutions such as BlackRock join the Bitcoin and cryptocurrency space, the conversation about Bitcoin’s future will always emerge.

BTC trades at $97,241 at the time of writing, down almost 3% over the past day.