|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
BlackRock's Robie Mitchnick: Bitcoin Is a "Risk-Off" Asset, Not a "Risk-On" One
Sep 27, 2024 at 09:49 pm
BlackRock's head of digital assets, Robie Mitchnick, recently stated that it appears to be somewhat incorrect to point to Bitcoin as a “risk-on” asset
BlackRock’s Head of Digital Assets Robie Mitchnick recently shared his thoughts on labeling Bitcoin a “risk-on” asset, highlighting a misperception driven by the high correlation observed between Bitcoin and US equity prices.
In a recent interview with Blockworks, Mitchnick stated that the “risk-on” label, which is typically applied to higher-risk assets like equities, commodities, and high-yielding bonds that perform well during periods of economic growth and market optimism, doesn’t fully capture Bitcoin’s unique risk profile.
He explained that Bitcoin is fundamentally different from traditional equities and is influenced by long-term drivers that are distinct from the immediate economic environment.
According to Mitchnick, Bitcoin is more accurately an “emerging global monetary alternative” due to its decentralized and non-sovereign nature, which sets it apart from traditional assets and renders it less susceptible to external market forces.
He suggests that a ‘risk-off’ classification would be more appropriate for Bitcoin. A handful of major events each year fundamentally shift Bitcoin’s landscape, while external factors have minimal impact on the crypto’s value.
Mitchnick highlights the resilience of Bitcoin’s price drivers, which are fundamentally distinct from those affecting typical equities. He adds that the cryptocurrency industry has inadvertently contributed to the “risk-on” misperception by treating Bitcoin as though it should behave like stocks.
However, Mitchnick’s statement aligns with a broader narrative, suggesting that Bitcoin’s long-term drivers and non-sovereign status distinguish it from traditional assets.
Recently, BlackRock has made an operational update to its Bitcoin exchange-traded fund (ETF) in response to investor concerns regarding Coinbase’s on-chain settlement processes.
In an update filed with the US Securities and Exchange Commission, BlackRock has stated that it will amend the ETF to require Bitcoin withdrawals from Coinbase to be completed within 12 hours.
This move by BlackRock comes amid industry-wide scrutiny over Coinbase’s ETF custodian procedures, with investors demanding evidence from Coinbase of the on-chain crediting of Bitcoins purchased by the spot ETFs.
Coinbase is the custodian for eight of the nine newly approved Ether ETFs and ten of the eleven spot Bitcoin ETFs in the US.
Meanwhile, Michael Saylor has voiced his support for the optimism expressed by BlackRock’s Robie Mitchnick regarding Bitcoin. To Saylor, the fact that Bitcoin is finite and the system is decentralized gives the crypto an upper hand over fiat currency, aligning with BlackRock’s perspective on the increasing need for non-sovereign securities.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Debate Over Celestia Transparency and Funding Rounds
- Sep 28, 2024 at 12:30 am
- Latest reports indicate that the Celestia community is disappointed with the Celestia Foundation's latest over-the-counter (OTC) token sales.
-
- Hamster Kombat (HMSTR) Token Finally Launched on Major Crypto Exchanges
- Sep 28, 2024 at 12:30 am
-
- Base Breaks $2 Billion TVL Mark: Coinbase L2 Solution Becomes DeFi Powerhouse
- Sep 28, 2024 at 12:25 am
- Base has breached the $2 billion threshold in total value locked (TVL) for the first time since its launch, as the Coinbase low-cost Layer-2 (L2)
-
- Floki Inu (FLOKI) Is Once Again Gaining Traction in the Cryptocurrency Market
- Sep 28, 2024 at 12:25 am
- According to World of Charts, a popular analyst, the breakout for FLOKI has been validated from the Triangle pattern.
-
- Coinbase Lists Hamster Kombat (HMSTR) Token for Perpetual Futures Trading
- Sep 28, 2024 at 12:25 am
- Coinbase has officially added support for Hamster Kombat, a tap-to-earn game on Telegram, by listing its token, HMSTR, for perpetual futures trading.
-
- The Cryptocurrency Markets Have Been Witnessing a Sharp Rise in SUI Action
- Sep 28, 2024 at 12:25 am
- The cryptocurrency markets have been witnessing a sharp rise in SUI action, up an astonishing almost 300% in the last month.
-
- SEC Chair Gary Gensler Highlights Need for Crypto Regulation
- Sep 28, 2024 at 12:25 am
- The SEC Chair made the remarks at a time when crypto markets have been volatile. In 2022, many firms failed, and one of them was the FTX
-
- Web3 Metaverse Platforms Could Solve the Loneliness Epidemic, Says Decentraland's Bay Backner
- Sep 28, 2024 at 12:25 am
- Decentralized metaverse platforms like Decentraland and the Sandbox could create more genuine online connections, according to Bay Backner, Head producer at Decentraland and assistant university professor.
-
- MAGA Price Prediction: TRUMP/USD Could Soar 50% to Hit $4.5 After Breaking Key Resistance Levels
- Sep 28, 2024 at 12:25 am
- The MAGA price rose 32% in the last 24 hours to trade at $3.01 as of 03:20 a.m. EST on trading volume that surged 60% to $9.5 million.