BlackRock’s crypto assets chief comments after Bitcoin’s drop

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about 4 hours ago

Bitcoin’s Role and Institutional Shift

Robbie Mitchnick, BlackRock’s Head of Digital Assets, frames Bitcoin as “digital gold,” a hedge against US debt and currency devaluation. He notes a widening acceptance among institutional investors, moving beyond early skepticism. BlackRock now allocates 1‑2% of its model portfolios to Bitcoin, viewing it as a low‑correlation diversification tool rather than a risky bet. The firm’s senior leadership, including CEO Larry Fink, has openly revised its stance after reviewing the technology.

Spot ETF Performance and Investor Mix

The recently launched spot Bitcoin ETF, IBIT, has exceeded BlackRock’s expectations, attracting strong demand. Initially, 80% of inflows came from retail investors, but the mix has evened to roughly 50‑50 between retail and institutions. Wealth advisors, hedge funds, and pension funds are showing growing interest, signaling broader institutional participation. This balanced demand underscores Bitcoin’s expanding role in mainstream investment products.

Investment Thesis and Market Potential

Mitchnick argues that persistent fiscal deficits and global money‑printing drive investors toward scarce assets like Bitcoin. He compares Bitcoin’s global, borderless nature to gold, highlighting its potential to capture a slice of gold’s $26 trillion market. Younger generations, especially Gen Z and Millennials, prefer Bitcoin as a store of value, reinforcing its long‑term growth prospects. The executive stresses that an open‑mind approach to new data, as demonstrated by BlackRock’s leadership, is essential for adapting to emerging asset classes.