Key Takeaways
- BlackRock's Robbie Mitchnick dismisses the idea that Bitcoin is 'risk-on'.
- Bitcoin is described as a hedge against monetary and geopolitical risks.
- BlackRock offers a spot Bitcoin ETF, iShares Bitcoin Trust (IBIT).
Robbie Mitchnick, head of digital assets at BlackRock, argues that Bitcoin has been mistakenly categorized as a “risk-on” asset, which is commonly associated with equities and other assets that perform well during favorable economic conditions.
Speaking to Bloomberg on September 24, Mitchnick explained:
What’s happened in the crypto industry is a bit of an own goal… Bitcoin, which is obviously a risky asset, has been extrapolated to behave like equities.
Mitchnick suggested that Bitcoin operates more like a “risk-off” asset, which typically performs better in times of market uncertainty, similar to gold and U.S. government bonds. He added,
Bitcoin’s long-term drivers are very different from what drives equities and other risk assets.
BlackRock’s recent Bitcoin white paper also positioned Bitcoin as a “unique diversifier” that can hedge against monetary and geopolitical risks.
Mitchnick emphasized:
Bitcoin is a scarce, global, decentralized, non-sovereign asset… it confuses investors when people call it risk-on.
BlackRock has further ventured into Bitcoin with its iShares Bitcoin Trust, a spot Bitcoin ETF offering regulated exposure to the asset. Mitchnick also downplayed recent updates to the ETF’s structure, calling them routine adjustments.
