BlackRock believes that not holding Bitcoin could pose greater risks than exposure to this asset, signaling a significant shift in perspective.
Robbie Mitchnick, Director of Digital Assets at BlackRock – the world's largest asset management company – made notable remarks at the Token2049 crypto conference, indicating that institutional investors' view of Bitcoin is undergoing a fundamental transformation. According to him, the critical factor determining Bitcoin's integration into the traditional financial system is its correlation with tech stocks.
Mitchnick emphasized: "The correlation between Bitcoin and tech stocks will be an extremely important driving factor. If Bitcoin trades like a tech stock, it will not be very attractive to institutional investors."
From Speculative Asset to Strategic Hedge
According to Mitchnick, Bitcoin will become particularly attractive if it demonstrates a low or even inverse correlation with low-probability extreme events (also known as "left tail events"). In such a case, Bitcoin could become an essential risk hedging tool in institutional investment portfolios.
"If Bitcoin trades with low or negative correlation during left tail events, it could become an extremely important asset for all types of institutional portfolios," he noted and concluded: "The conversation shifts from 'Is this asset too risky for us?' to 'Are we risking not owning it?'"
These statements appear as Bitcoin increasingly shows signs of "decoupling" from the stock market, with many experts noting that the asset is maturing into a more stable store of value. Despite ongoing concerns about volatility and unclear legal environments, digital asset supporters view BTC's market behavior shift as evidence of its long-term value.
BlackRock has made a strong move into the crypto market under CEO Larry Fink's leadership – someone who was previously skeptical of cryptocurrencies. Under his guidance, the company launched the Ishares Bitcoin Trust (IBIT) in January 2024, and this ETF quickly became the fastest-growing fund in history.
Fink – who now describes Bitcoin as "digital gold" – has distinctly shifted his perspective, arguing that BTC is an important asset to protect against currency devaluation risks and global political risks. In a bold forecast early in 2025, he suggested that if sovereign wealth funds allocate just 2% to 5% to Bitcoin, the price could reach $700,000 – reflecting Wall Street's powerful change in perspective towards crypto assets.
