Despite recent correlations between Bitcoin and U.S. equities, BlackRock Inc.’s head of digital assets, Robbie Mitchnick, cautions against labeling the cryptocurrency as a “risk-on” asset. Traditionally, risk-on assets like stocks, commodities, and high-yield bonds tend to thrive during periods of market optimism and economic expansion, while investors often favor safe-haven assets such as gold during times of uncertainty.
In a Bloomberg Television interview on Tuesday, Mitchnick compared Bitcoin to gold, stating, “Gold shows a lot of the same patterns. Where you have these temporary periods, but long term [correlation is] close to zero.” He emphasized Bitcoin’s unique characteristics, noting that it is decentralized, scarce, and not controlled by any single country or government.
“When we think about Bitcoin, we think about it primarily as an emerging global monetary alternative,” Mitchnick explained. He described Bitcoin as a “scarce, global, decentralized, non-sovereign asset” that carries no country-specific risk and no counterparty risk.
BlackRock manages exchange-traded funds (ETFs) that invest in both Bitcoin and Ether. While many investors equate Bitcoin with digital gold—viewing it as a store of value during stressful market conditions—Mitchnick acknowledged that the narrative surrounding Ether is less straightforward among institutional clients. Ether serves as the backbone for various applications on the Ethereum blockchain.
Year-to-date, Bitcoin has surged by 49%, while Ether has increased by 15%, largely driven by the approval of ETFs holding both cryptocurrencies earlier this year.
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