A 2024 Republican candidate criticizes BlackRock as part of a powerful elite targeting ESG standards in corporate America. Vivek Ramaswamy, a distant third in the polls, is challenging BlackRock along with State Street and Vanguard for pushing ESG agendas. Despite the criticism, spot approval of BlackRock’s Bitcoin ETF seems likely, as noted by Galaxy Digital’s Mike Novogratz.
One of the main contenders in the race for becoming the next Republican candidate for the presidency of the United States has accused BlackRock of being part of the “most powerful cartel in the history of humanity.”
Vivek Ramaswamy made the remarks at the Richard Nixon Foundation on Sunday. They quickly spread to many parts of the online space.
Vivek Ramaswamy Still a Distant Third
The shadow candidate, who is closing in on runner-up Florida Gov. Ron DeSantis, has been an outspoken critic of environmental, social and governance (ESG) standards at corporate America.
The candidate has generated controversy. However, Ramaswamy remains a distant third, reaching just 9% in the polls. He is still far behind former President Donald Trump, who is over 50%.
The attack on BlackRock is one of the loudest in recent months. Furthermore, it comes at a critical time for BlackRock as it seeks timely approval of the Bitcoin ETF from the Securities and Exchange Commission.
If given the green light, this could be one of the first spot Bitcoin ETFs for US investors. The asset manager led the recent wave of applications, submitting them on June 16. Others, including Invesco, WisdomTree, ARK Invest, and Valkyrie, joined soon after.
In a post on X (formerly Twitter), Ramaswamy singled out BlackRock, State Street and Vanguard, the “Big Three” investment firms. He stated the following:
“BlackRock, State Street and Vanguard represent the most powerful cartel in human history: They are the largest shareholders in nearly every public company and use *their* own money to push ESG agendas on companies. boards of directors: voting for equity audits and Scope 3 emissions limits.”
He goes on to stress that:
“This raises serious fiduciary, antitrust and conflict of interest concerns. As president, I will cut off the true guiding hand of the ESG movement: not the invisible hand of the free market, but the invisible fist of government itself.”
BlackRock Has Sought to Dodge the ESG Label
What is at stake is “our very sovereignty,” Ramaswamy said during his speech, calling it a “monarchical vision.”
“We the people cannot be trusted with such questions. So business leaders, government leaders and three-letter institutions need to work together, blurring the boundaries between the public and private sectors.”
Since 2017, BlackRock has strived to reinvent itself as a leader in the ESG movement. ESG advocates want to encourage companies to do good things for the environment, society and their own management.
However, ESG’s critics believe that it imposes a political agenda on companies that should be looking out for their own interests. Additionally, in theory, those of its shareholders, who do not obtain maximum returns through ESG investing.
Since then, BlackRock has sought to distance itself from the movement a bit. Or at least to avoid being smeared with your terminology. In June, Larry Fink, BlackRock’s chief executive, said he had stopped using the term “weaponized” ESG in recent months.
Recent reports suggest that despite the vicious attacks, BlackRock may have little to worry about. At least when it comes to your Bitcoin Spot ETF.
Multiple sources have confirmed to Galaxy Digital’s Mike Novogratz that approval is a matter of “when, not if,” according to an earning’s call on August 8. Galaxy Digital has partnered with Invesco on its own Bitcoin ETF application.
By Audy Castaneda
