BlackRock’s Head of Crypto Assets Speaks Following Bitcoin’s Decline

Robbie Mitchnick, Head of Digital Assets at BlackRock, the world’s largest asset management company, evaluated the role of Bitcoin (BTC) in global portfolios and the historical success of spot ETFs.

Mitchnick highlighted the growing importance of Bitcoin as “digital gold” and explained how the perspective of institutional investors has changed.

BlackRock executive Robbie Mitchnick made key statements regarding the company’s Bitcoin strategy and the future of cryptocurrencies in an interview with Natalie Brunell. He argued that Bitcoin stands out as a unique hedging tool, particularly amid concerns about financial debt and currency devaluation in the US.

Mitchnick, commenting on the success of BlackRock’s spot Bitcoin ETF, codenamed IBIT, stated that interest has exceeded expectations. He noted that 80% of inflows in the first months of its launch came from individual investors, but that this ratio has stabilized over time. “Currently, the ratio is around 50-50,” Mitchnick said. “On the institutional side, interest from wealth advisors, hedge funds, and even pension funds is increasing.”

Mitchnick touched on the concept of “monetary devaluation” when explaining Bitcoin’s investment thesis. The executive noted that the US’s growing fiscal deficits and global money-printing policies are pushing investors to seek alternatives, saying:

“Over the last few thousand years, only two, perhaps three if we count silver, monetary alternatives have emerged that have gained global adoption: gold and now Bitcoin. While Bitcoin is newer and more volatile than gold, it stands out in the digital world as an asset that knows no borders, is easy to transfer, and is in scarce supply.”

Mitchnick also touched on how institutional investors position Bitcoin, explaining that BlackRock includes Bitcoin at a rate of 1% to 2% in its model portfolios. He noted that Bitcoin’s correlation with stocks is low over the long term, contrary to popular belief, and argued that the asset should be viewed not as a “risky asset,” but rather as a “diversification tool” free from systemic risks.

The interview also discussed BlackRock CEO Larry Fink’s transformation from a former Bitcoin skeptic to one of its most prominent advocates. Mitchnick noted that Fink’s change of heart after thoroughly examining the technology was admirable, commenting, “Rather than making a decision in 2017 and then clinging to it even if the facts change, keeping an open mind and changing your mind based on new data is a sign of leadership.”

Mitchnick noted that younger generations (Gen Z and Millennials) prefer Bitcoin over gold, stating that the two assets serve a similar “store of value” role rather than competing with each other. Highlighting gold’s $26 trillion market capitalization, the executive argued that Bitcoin has the potential to grow by capturing a share of this market.

*This is not investment advice.

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