Although Bitcoin has shown strong correlation with US equity price movements recently, BlackRock’s head of digital assets, Robbie Mitchnick, argues that labeling it a “risk-on” asset could be misleading. Traditional risk-on assets like stocks, commodities, and high-yield bonds tend to perform well during economic expansions, while assets like gold are favored during uncertainty.
“Gold exhibits similar patterns,” Mitchnick noted, pointing out that long-term, Bitcoin’s correlation with other assets is near zero. He emphasized Bitcoin’s decentralized nature and scarcity, making it unique compared to other assets. “It’s a global, decentralized, non-sovereign asset with no country-specific or counterparty risk,” he added.
While BlackRock invests in both Bitcoin and Ether through exchange-traded funds, Bitcoin is widely viewed as “digital gold.” However, the narrative around Ether remains less clear among institutional clients, given its use in decentralized applications on the Ethereum blockchain.
This year, Bitcoin has surged 49%, while Ether has gained 15%, largely driven by the approval of ETFs holding both tokens.