Key Takeaways
- BlackRock says Bitcoin's decoupling from tech stocks is key to institutional interest.
- The firm's Bitcoin ETF, IBIT, has pulled in $57 billion since January 2024.
- BlackRock sees Bitcoin potentially becoming a necessary portfolio hedge for institutions.
BlackRock is seeing increased institutional interest in Bitcoin, driven by what the firm calls a crucial development: Bitcoin’s potential to break away from its correlation with tech stocks.
Insights from BlackRock’s Head of Digital Assets
Robbie Mitchnick, BlackRock’s Head of Digital Assets, told DL News at the Token2049 conference in Dubai that this divergence is a turning point.
Mitchnick said:
The correlation between Bitcoin and tech stocks is going to be an absolutely critical driver. If Bitcoin trades more like a tech stock, it is not very interesting to institutions.
Bitcoin as a ortfolio Hedge
However, if Bitcoin begins acting more like a hedge—moving independently or inversely to major market downturns—Mitchnick believes it could become a necessary part of institutional portfolios.
He added:
Then the conversation goes from, ‘Is this too risky for us?’ to, ‘Might it be risky not to own any?’.
Bitcoin’s Decoupling from Equities
The shift, often described as Bitcoin “decoupling” from equities, is what many in the industry see as Bitcoin starting to behave more like a safe-haven asset—similar to gold.
BlackRock’s Leadership in the Bitcoin ETF Space
BlackRock CEO Larry Fink has previously described Bitcoin as:
Digital gold.
The firm’s iShares Bitcoin Trust (IBIT) now leads the Bitcoin ETF space, attracting roughly $57 billion since its January 2024 launch—$37 billion more than its closest competitor, Fidelity’s FBTC.
BlackRock’s Global Asset Management
BlackRock manages $12 trillion in assets globally and continues to dominate with IBIT, while also operating the $2.7 billion onchain BUIDL fund and the iShares Ethereum Trust.
