BlackRock's recent dance with Ethereum—depositing, withdrawing, and then redepositing millions of dollars' worth of ETH—has sent ripples through the crypto market. The bulls are cheering and they’re right to view it as institutional validation. I see something else: a stark illustration of global inequality and a missed opportunity for real-world impact.
Could ETH Funds Solve Real Problems?
Think about it: BlackRock moved around $27 million in ETH within hours. What could that money do in Africa?
- Education: $27 million could fund scholarships for thousands of students, building a generation of leaders and innovators.
- Healthcare: It could equip hospitals with essential medical supplies, saving lives and improving healthcare access for underserved communities.
- Infrastructure: Imagine the impact on rural areas if that money was used to build clean water systems or renewable energy projects.
- Empowerment: Fund micro-loan programs for female entrepreneurs.
Instead, it's fueling the speculative crypto market. We’re cheering on price rallies while looking the other way at their ability to do real, a lot of good.
Crypto's Democratization Promise: A Myth?
Crypto has frequently been billed as a democratizing force, an alternative to legacy financial systems that would put the power in the people’s hands. If the playing field is tilted by giants like BlackRock, how democratic are those dollars? Does a higher ETH price really benefit the ordinary person in Nairobi or Lagos? Or does it primarily serve the interests of people already holding large amounts of crypto? Let's be real: the narrative of crypto as a tool for financial inclusion often clashes with the reality of its concentration in the hands of a few.
The reality is, the value of crypto does not go as far as you might think.
| Feature | Crypto Democratization Claims | Reality |
|---|---|---|
| Access | Open to everyone | Requires internet access, digital literacy, and capital – barriers in Africa. |
| Decentralization | No central authority | Dominated by large exchanges and institutional investors. |
| Empowerment | Financial independence | Volatility and scams pose significant risks to inexperienced users. |
BlackRock’s first responsibility is to its investors—which is as it should be, and no one can argue otherwise. Wait, do ethical considerations not come into play with investment decisions? Is maximizing profit really the only measure of success we’re willing to accept? We can — and must — consider the social and environmental returns of our public investments. We need to ask ourselves: Are we okay with potentially exacerbating global inequalities in the pursuit of financial gain?
Ethical Investing: A Forgotten Principle?
BlackRock’s ETH purchases would raise the price of ETH and be profit-maximizing for their investors. We know less, though, about whether these interventions just shift wealth to a handful of people, away from other social priorities that badly need the resources. This requires a deep reassessment of the ethical ramifications of institutional crypto investments.
I'm not suggesting BlackRock is inherently evil. Their actions highlight a systemic problem: the prioritization of profit over people. We can’t stop there—we need to demand more from our financial institutions. Let’s demand investments that yield triple bottom-line returns. Alongside addressing our climate needs, these investments must first and foremost help us build a more just and equitable world. So, don’t neglect the neglected voices! Communities still could if we stop the vast sums from flooding into the crypto market.
Let’s change the conversation from rejoicing in price increases to insisting on responsible and transformative investments.
Let's shift the narrative from celebrating price rallies to demanding ethical and impactful investments.
