BlackRock has observed a surge in client interest following Bitcoin’s recent ‘decoupling’ from technology stocks. According to Robbie Mitchnick, head of digital assets at the firm, Bitcoin’s correlation to risky assets is crucial to its investment appeal. Speaking at the Token2049 cryptocurrency conference in Dubai, Mitchnick explained that if Bitcoin continues to trade independently of ‘left tail’ events or extreme downside risk, it could become a vital portfolio asset for institutional investors. The current decoupling has sparked optimism among Bitcoin backers, who see the cryptocurrency beginning to behave like a safe haven, similar to gold. This development is particularly significant for BlackRock, the world’s largest investment firm managing $12 trillion in assets. The company’s Bitcoin ETF has attracted approximately $57 billion since its launch in January 2024, dominating the Bitcoin ETF space with about $37 billion more in assets than its closest competitor. Bloomberg ETF analyst Eric Balchunas noted that larger institutions are seeking ‘digital gold’ – a safe haven that can hedge against inflation and market volatility. As Bitcoin continues to decouple from stocks, institutions are increasingly interested in learning more about the cryptocurrency. Balchunas believes this trend will be beneficial long-term, not just for BlackRock’s ETF but for Bitcoin in general.
BlackRock Sees Growing Client Interest as Bitcoin Decouples from Tech Stocks
By techgeekwire