BlackRock’s Robert Mitchnick: Bitcoin Is Not Risk Asset, Possible Flight to Safety

Key Points:

• BlackRock’s Robert Mitchnick doubts the approval of additional crypto ETFs, noting regulatory challenges.
• He sees Bitcoin and Ethereum as complementary assets, not competitors.
• BlackRock’s IBIT trust is performing strongly, indicating growing investor interest in Bitcoin.

At the Bitcoin 2024 conference, BlackRock’s head of digital assets, Robert Mitchnick, shared his vision regarding the future of cryptocurrency exchange-traded funds and the evolving roles of Bitcoin and Ethereum, The Block reported.

Read more: Ethereum ETF Trading Exceeds $1 Billion in Volume on the First Day

BlackRock’s Robert Mitchnick: Bitcoin and Ethereum Are Complementary Assets, Not Competitors

Contrasted with this spot Ethereum ETF, which only a fortnight ago was launched into the market, BlackRock’s Robert Mitchnick comes in pretty skeptical regarding the green light approval for similar funds in other cryptocurrencies. He made a case that Bitcoin and Ethereum weren’t rivals, but rather served to complement each other: Bitcoin represents a store of value/alternative global currency, while Ethereum represents technological capacity for innovation.

He says regulators are still murky, but the SEC has been very clear. In fact, it said explicitly that it’s not going to allow spot Ethereum ETFs to have staking. There is still a future for crypto assets, he says, and they’ll continue finding their way into the market.

BlackRock’s IBIT Trust Shines Amid Growing Bitcoin Interest

The performance of these Bitcoin ETFs, such as BlackRock’s IBIT trust, has been very strong comparatively. While the IBIT trust is only the second-best performing ETF this year, next to an S&P 500 fund, it makes up more than 20% of BlackRock‘s inflows for the year. Mitchnick said investors typically allocate 2% to 3% of their funds to that ETF, indicating sudden interest in Bitcoin as an independent asset class.

BlackRock’s Robert Mitchnick hopped on to dispel myths about Bitcoin. He framed Bitcoin not as a simple “risk asset,” but as a possible “flight to safety” against uncertainty. That framing, he said, is what matters for comprehending the role of Bitcoin apart from traditional crises and market gyrations.