Bitcoin has been mischaracterized as a “risk-on” asset, according to Robbie Mitchnick, BlackRock’s head of digital assets. In a recent interview with Bloomberg on September 24, Mitchnick critiqued this widespread misconception, calling it a self-inflicted misunderstanding within the crypto industry.
“Some of the crypto research publications and commentaries have incorrectly drawn a parallel between Bitcoin’s inherent risk and its classification as a risk-on asset,” Mitchnick explained.
He argued that this oversimplification has led many to associate Bitcoin with assets like equities, which thrive in favorable economic conditions but suffer during downturns. However, Mitchnick believes this view misses the mark.
Long-Term Focus
“Fundamentally, the factors driving Bitcoin over the long term are vastly different from those that influence traditional risk assets like stocks,” Mitchnick said. In some cases, he added, these drivers might even be inverted.
His remarks align with BlackRock’s recently published Bitcoin white paper, which described the cryptocurrency as a “unique diversifier” that could act as a hedge against geopolitical and monetary risks.
Mitchnick further highlighted that Bitcoin’s characteristics—scarcity, decentralization, and immunity to country-specific or traditional counterparty risks—position it more as a “risk-off” asset.
Risk-off assets, such as gold, silver, and U.S. government bonds, are typically viewed as safe havens during economic uncertainty. “When people describe Bitcoin as a risk-on asset, it confuses investors,” he said. “Based on its core properties, it should be thought of as risk-off.”
Mitchnick stressed that only a handful of events each year have a tangible impact on Bitcoin’s value, reinforcing its resilience and divergence from other volatile markets.
Interestingly, in 2022, Stansberry Research, Mark Yusko, a longtime hedge fund manager at Morgan Creek Digital predicted that Bitcoin (BTC) would one day replace gold.
BlackRock’s Dominance in Bitcoin ETF Market
In terms of BlackRock’s ongoing involvement in the Bitcoin ecosystem, the company offers a spot Bitcoin exchange-traded fund (ETF) under the iShares Bitcoin Trust (IBIT), giving investors direct exposure to the cryptocurrency.
IBIT has proved itself as the leader in these investment funds, boasting net assets worth $22.96 billion as of September 24. It surpassed 300,000 BTC in assets under management (AUM) within five months of trading.
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