BlackRock’s Mitchnick: Bitcoin is a ‘Risk-Off’ Asset
Despite Bitcoin’s recent correlation with US equities, Robbie Mitchnick, BlackRock’s head of digital assets , believes it’s a misnomer to label Bitcoin a “risk-on” asset. Traditionally, risk-on assets, like stocks, commodities, and high-yield bonds, perform well during periods of economic growth and market optimism , while assets like gold gain popularity during times of uncertainty.
In an interview with Bloomberg TV , Mitchnick pointed out that Bitcoin, similar to gold, shows temporary correlations but remains largely uncorrelated in the long term. “Gold exhibits similar patterns, with long-term correlation close to zero,” he said.
Mitchnick emphasized Bitcoin’s unique attributes: it’s decentralized, scarce, and not controlled by any government or country. “When we consider Bitcoin, we see it primarily as an emerging global monetary alternative—scarce, global, decentralized, and non-sovereign, with no country-specific or counterparty risk,” he explained.
BlackRock manages exchange-traded funds (ETFs) investing in Bitcoin and Ether. While Bitcoin is often compared to digital gold, institutional clients find the narrative for Ether less clear, as it’s used by applications on the Ethereum blockchain .
So far in 2024, Bitcoin has risen by 49%, and Ether by 15%, thanks largely to the approval of ETFs that hold both tokens.
Read More: https://onthenode.com/cryptocurrency/blackrocks-mitchnick-bitcoin-is-a-risk-off-asset
Despite Bitcoin’s recent correlation with US equities, Robbie Mitchnick, BlackRock’s head of digital assets , believes it’s a misnomer to label Bitcoin a “risk-on” asset. Traditionally, risk-on assets, like stocks, commodities, and high-yield bonds, perform well during periods of economic growth and market optimism , while assets like gold gain popularity during times of uncertainty.
In an interview with Bloomberg TV , Mitchnick pointed out that Bitcoin, similar to gold, shows temporary correlations but remains largely uncorrelated in the long term. “Gold exhibits similar patterns, with long-term correlation close to zero,” he said.
Mitchnick emphasized Bitcoin’s unique attributes: it’s decentralized, scarce, and not controlled by any government or country. “When we consider Bitcoin, we see it primarily as an emerging global monetary alternative—scarce, global, decentralized, and non-sovereign, with no country-specific or counterparty risk,” he explained.
BlackRock manages exchange-traded funds (ETFs) investing in Bitcoin and Ether. While Bitcoin is often compared to digital gold, institutional clients find the narrative for Ether less clear, as it’s used by applications on the Ethereum blockchain .
So far in 2024, Bitcoin has risen by 49%, and Ether by 15%, thanks largely to the approval of ETFs that hold both tokens.
Read More: https://onthenode.com/cryptocurrency/blackrocks-mitchnick-bitcoin-is-a-risk-off-asset
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