Robbie Mitchnick, Blackrock's head of digital assets, discussed his perspective on bitcoin during a Bloomberg interview on Tuesday.
Blackrock’s digital asset chief believes bitcoin is a “risk-off” asset, even though it has been trading in line with U.S. stocks. Drawing a comparison between bitcoin and gold, he highlighted their decentralized structure and limited supply as key factors setting them apart. Meanwhile, Blackrock’s engagement with bitcoin is evident in the strong performance of its spot bitcoin exchange-traded fund (ETF).
Is Bitcoin a Risk-On or Risk-Off Asset? BlackRock Weighs In
In an interview with Bloomberg on Tuesday, Robbie Mitchnick, head of digital assets at Blackrock, shared his perspective on bitcoin. He suggested that the narrative of bitcoin being a “risk-off” asset is valid, despite its recent correlation with U.S. equities. He drew parallels between bitcoin and traditional safe-haven assets like gold, which investors typically favor during periods of uncertainty. In contrast, stocks, commodities, and high-yield bonds are generally classified as “risk-on” investments.
Mitchnick explained that assets like gold and bitcoin tend to exhibit similar behavior over longer time frames, despite shorter-term variations in correlation. “Gold shows a lot of the same patterns,” Mitchnick said, adding:
Where you have these temporary periods, but long term [correlation is] close to zero.
Emphasizing that bitcoin’s decentralized nature and scarcity distinguish it from other asset classes, he stated: “You would base it as risk-off.”
Bitcoin has surged 49% this year, while ether has risen 15%, partially driven by the approval of exchange-traded funds (ETFs) earlier this year. Mitchnick explained that while investors largely view BTC as a safe store of value and digital gold, ether’s narrative is still evolving. He noted that ETH’s value is linked to the broader adoption of applications running on Ethereum, but it does not yet have the same perceived stability as bitcoin among institutional investors.
Blackrock’s increasing engagement with BTC is also demonstrated by the success of its Ishares Bitcoin Trust (IBIT). The ETF, launched in January, quickly became the world’s largest bitcoin ETF. Notably, Blackrock CEO Larry Fink has shifted his stance on bitcoin, now referring to it as “digital gold” and a “legitimate financial instrument.”
What do you think about Blackrock’s increasing interest in bitcoin and its classification as a “risk-off” asset? Let us know in the comments section below.
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