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Bitcoin’s classification in the financial ecosystem is highly debatable. Some analysts see it as a stable haven and others as a risky asset.
However, Robbie Mitchnick, the head of digital assets at BlackRock Inc., argues that Bitcoin is fundamentally a risk-off asset.
Risk-off assets like gold and government bonds are favored in uncertain times, providing a safe harbor when the economic forecast looks grim. In contrast, risk-on assets, such as stocks, thrive when investor confidence is high. Despite occasional correlations with the stock market, Mitchnick asserts that Bitcoin ultimately behaves differently in the long run.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Mitchnick further explores Bitcoin’s unique attributes as a global, decentralized, non-sovereign asset. He believes that Bitcoin is not tied to any single country’s economic health or policies. It’s a scarce asset, immune to the usual risks of currency debasement and political turmoil.
According to Mitchnick, due to these reasons, Bitcoin becomes an attractive option when traditional currencies falter.
BlackRock’s engagement with Bitcoin highlights its risk-off potential. The firm’s iShares Bitcoin Trust (IBIT) now holds nearly $23 billion in assets. This significant management suggests a strong institutional and retail belief in Bitcoin’s stability in tumultuous times.
Bitcoin Assets Under Management. Source: SoSoValue
This shifting perspective is evident beyond BlackRock. At the recent Barron’s Advisor 100 Summit, a clear change was noted among top financial advisors in the US.
Read more: Who Owns the Most Bitcoin in 2024?
Matt Hougan, Chief Investment Officer at Bitwise, emphasized this trend, stating that about 70% of summit attendees now personally own cryptocurrencies—significantly up from just a few years ago. This marked increase mirrors a broader industry trend in which advisors’ personal investments precede their recommendations to clients.
As these barriers erode, incorporating Bitcoin into diverse portfolios might become more standard, reinforcing its role as a risk-off asset.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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The post BlackRock Executive Explains Why Bitcoin Is a Safe Haven Asset appeared first on Panther AI.
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However, Robbie Mitchnick, the head of digital assets at BlackRock Inc., argues that Bitcoin is fundamentally a risk-off asset.
BlackRock Executive Talks About Fundamentals of Bitcoin
Risk-off assets like gold and government bonds are favored in uncertain times, providing a safe harbor when the economic forecast looks grim. In contrast, risk-on assets, such as stocks, thrive when investor confidence is high. Despite occasional correlations with the stock market, Mitchnick asserts that Bitcoin ultimately behaves differently in the long run.
Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach
Mitchnick further explores Bitcoin’s unique attributes as a global, decentralized, non-sovereign asset. He believes that Bitcoin is not tied to any single country’s economic health or policies. It’s a scarce asset, immune to the usual risks of currency debasement and political turmoil.
According to Mitchnick, due to these reasons, Bitcoin becomes an attractive option when traditional currencies falter.
BlackRock’s engagement with Bitcoin highlights its risk-off potential. The firm’s iShares Bitcoin Trust (IBIT) now holds nearly $23 billion in assets. This significant management suggests a strong institutional and retail belief in Bitcoin’s stability in tumultuous times.
Bitcoin Assets Under Management. Source: SoSoValue
This shifting perspective is evident beyond BlackRock. At the recent Barron’s Advisor 100 Summit, a clear change was noted among top financial advisors in the US.
Read more: Who Owns the Most Bitcoin in 2024?
Matt Hougan, Chief Investment Officer at Bitwise, emphasized this trend, stating that about 70% of summit attendees now personally own cryptocurrencies—significantly up from just a few years ago. This marked increase mirrors a broader industry trend in which advisors’ personal investments precede their recommendations to clients.
As these barriers erode, incorporating Bitcoin into diverse portfolios might become more standard, reinforcing its role as a risk-off asset.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source link
The post BlackRock Executive Explains Why Bitcoin Is a Safe Haven Asset appeared first on Panther AI.
Continue reading...