BlackRock’s head of digital assets, Robie Mitchnick, recently stated that it appears to be somewhat incorrect to point to Bitcoin as a “risk-on” asset even if the correlation with US equity price has been high recently.
In general, higher-risk assets such as equities, commodities, and high-yielding bonds perform during economic upturns and periods of market optimism. Investors resort to investing in goods that are unstable during these periods, such as gold.
He said this label has influenced investors’ perceptions, especially those who rely on a narrative that centers on Bitcoin’s price. Mitchnick is convinced that long-term drivers of Bitcoin prices are, in fact, fundamentally different from drivers of typical equities.
As a result of this misrepresentation, Bitcoin’s true risk profile has become unclear. According to Mitchnick, by treating Bitcoin as though it should act like stocks, the cryptocurrency sector has unintentionally contributed to the spread of this misconception.
He suggested that Bitcoin ought to be considered a “risk-off” asset because of its decentralized and non-sovereign nature. He said that just a few big events a year really change Bitcoin’s foundations and that outside variables rarely affect the crypto’s value.
BlackRock’s Operational Update on Bitcoin ETF
Recently, the asset management firm has submitted an update to its Bitcoin exchange-traded fund (ETF) in response to investor concerns over Coinbase’s on-chain settlement processes. In a filing with the US Securities and Exchange Commission, BlackRock stated that it will revise the ETF to mandate Bitcoin withdrawals from Coinbase within 12 hours.
BlackRock’s latest change comes in response to industry-wide worries over Coinbase’s ETF custodian procedures. Investors are increasingly requesting that Coinbase provide on-chain evidence of the Bitcoins purchased by the spot ETFs.
In the US, Coinbase is the custodian for eight of the nine newly approved Ether ETFs and ten of the eleven spot Bitcoin ETFs. Concurrently, Michael Saylor also extended his support to Bitcoin optimism that BlackRock’s Robie Mitchnick has displayed.
To him, the fact that Bitcoin is finite and the system is decentralized gives the crypto an edge over the fiat currency. This is per BlackRock’s view that there is an increasing need for non-sovereign securities.
US SEC Delays Decision On Blackrock’s Ethereum Etf Options Listing
In addition, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on the Nasdaq’s proposal to list and trade options on BlackRock’s spot Ethereum ETFs. Originally set for an earlier date, the new deadline for the ruling is now November 10.
This delay follows closely after the SEC granted permissions for options trading on BlackRock’s iShares Bitcoin Trust. BlackRock’s Ethereum ETFs, particularly the ETHA, have demonstrated notable market resilience, attracting significant investment. With net assets of approximately $963 million and $1.10 billion in net inflows, ETHA stands out in the crypto landscape.
