BlackRock’s Crypto Head Disagrees with Classifying Bitcoin as a ‘Risk On’ Asset

Bitcoin has often been misunderstood as a “risk-on” asset, according to Robbie Mitchnick, head of digital assets at BlackRock.

In a Sept. 24 interview with Bloomberg, Mitchnick explained, “The crypto industry has unintentionally contributed to this misconception.” He went on to say, “Some publications and daily commentaries have taken the fact that Bitcoin, as a risky asset, and stretched that to claim it should behave like equities, which is misleading.”

Mitchnick emphasized that, at its core, Bitcoin operates differently from traditional equities and other risk assets. “When you examine the underlying fundamentals, the long-term drivers of Bitcoin diverge significantly from those influencing equities, and in some cases, they may even be inversely related,” he said.

BlackRock’s latest Bitcoin white paper classifies Bitcoin as a “unique diversifier,” pointing out its potential as a hedge against both monetary and geopolitical risks.

“When we evaluate Bitcoin, we primarily see it as an emerging global monetary alternative,” Mitchnick stated. “It’s a scarce, decentralized, non-sovereign asset, free from country-specific or traditional counterparty risks.”

He added that classifying Bitcoin as “risk-on” misleads investors. “Based on the characteristics I just mentioned, it should actually be seen as more of a risk-off asset.”

A risk-on asset typically refers to investments like equities, tech stocks, and certain commodities that perform well in favorable economic conditions. Conversely, risk-off assets, such as gold, silver, and government bonds, are seen as safer during times of economic uncertainty.

“The truth is, only a few key events each year actually affect Bitcoin’s fundamental value,” Mitchnick explained.

BlackRock currently offers a spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), allowing investors to gain exposure to Bitcoin through a regulated investment vehicle.

Mitchnick also downplayed concerns about a recent update to the Bitcoin ETF, which mandates withdrawals from Coinbase within 12 hours. “Nothing significant has changed here,” he reassured. “We are continuously optimizing our models with Coinbase, just as we do with all service providers, as part of the natural evolution of these crypto ETFs.”

PlanB dreams up a scenario that would see Bitcoin hit $1 million

Amid the buzz surrounding BlackRock’s Bitcoin ETF, PlanB, a well-known crypto analyst and the mind behind the Bitcoin stock-to-flow (S2F) model, has stirred excitement with a bold new prediction.

In a Sept. 24 post on X, PlanB painted a scenario where Bitcoin surges to over $1 million by the end of 2025. He imagines a series of events beginning with Donald Trump winning the next U.S. election, which would allegedly put an end to the “war on crypto,” driving Bitcoin to $100,000.

By January 2025, according to PlanB’s theory, crypto companies would return to the U.S., propelling Bitcoin to $200,000. Following this, Trump would build a strategic Bitcoin reserve by April, lifting the asset to $400,000, before “face-melting FOMO” pushes Bitcoin to $1 million between July and December.

Despite the excitement, many commentators found the prediction overly optimistic. One crypto trader, Mr. Moontastic, humorously responded, “If all of this comes true, I’ll run naked in the streets.”

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