Bitcoin is not a risky asset! BlackRock executive calls for an end to misleading market labels: characteristics do not match.

BlackRock ( Digital Assets Head Robert Mitchnick recently stated that the reason Bitcoin is labeled as a "high-risk asset" is largely related to the narrative of the Crypto Assets industry itself. He believes that the core characteristics of Bitcoin do not align with the definition of traditional risk assets, and there is a misunderstanding in the market regarding its risks.

The narrative of the crypto industry distorts the image of Bitcoin.

Mitchnick pointed out during an interview on CNBC's "Squawk Box" that the Crypto Assets industry has long portrayed Bitcoin as a "risk asset," overlooking its core characteristics such as "globality, scarcity, and decentralization." This long-standing misconception has affected the market's valuation of Bitcoin:

The phenomenon we observe is largely a self-fulfilling effect caused by the research and commentary of the crypto industry itself, and it can even be said to be a self-imposed dilemma, because they continuously emphasize the attributes of Bitcoin related to risk assets, rather than its fundamental characteristics.

In traditional financial markets, risk assets typically refer to investment targets such as stocks that may lead to losses. However, Mitchnick believes that this definition should not apply to Bitcoin, as its nature is different from that of general risk assets.

) The collapse of the crypto market under the trade war: Bitcoin ultimately cannot escape the fate of a risk asset (

Bitcoin ETF boosts institutional investment wave

Since the SEC approved the Bitcoin spot ETF at the beginning of 2024, institutional investors' interest in Bitcoin has surged significantly. The iShares Bitcoin Trust launched by BlackRock has rapidly become the market leader, currently managing assets totaling $48.7 billion, which accounts for more than half of the entire Bitcoin spot ETF market.

At the same time, IBIT has also set a record for the ETF industry by reaching 10 billion USD in assets faster than any other in its 32-year history. The massive inflow of institutional funds is widely regarded as the main driving force behind Bitcoin's price reaching a historical high of 108,000 USD by the end of 2024.

However, due to the increasing uncertainty in the US economy and market concerns about President Trump's trade tariff policies, the price of Bitcoin has recently retraced over 20%. In this wave of decline, Bitcoin spot ETFs also experienced a continuous outflow of nearly $5.4 billion over five weeks, only seeing an influx of funds for the first time the day before yesterday.

) Bitcoin ETF saw a single-day inflow of 274 million! Fidelity's FBTC attracted 127 million, the most eye-catching, as institutional funds continue to replenish (.

Economic recession is not necessarily unfavorable to Bitcoin.

Regarding the recent market views that economic recession will affect Bitcoin, Mitchnick raised objections. He believes that Bitcoin, as an asset independent of sovereign currency systems, does not show a clear correlation with economic cycles.

Will an economic recession affect Bitcoin prices? This statement is completely unreasonable. In fact, an economic recession could become a catalyst for driving demand for Bitcoin.

He pointed out that even though the rise in interest rates in the United States may put pressure on Bitcoin, other assets such as stocks will face the same challenges. Therefore, the volatility of Bitcoin should not be solely attributed to macroeconomic factors.

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2024 is historic, Bitcoin is still digital gold.

Even though prices have recently retreated, Mitchnick still emphasizes that Bitcoin has risen by 15% since last November, and the long-term trend remains optimistic:

The year 2024 is quite a historic year for Bitcoin, which is why people regard Bitcoin as digital gold.

However, well-known gold bull and Bitcoin critic Peter Schiff holds a different view, as he warned on X a few days ago:

The Bitcoin bubble has burst, and true gold is the future. Digital Fool’s Gold ) will gradually be eliminated from the market, and those who ignore this trend will reap the consequences.

( The market value of gold hits a new high of 20 trillion USD, is US national debt increasingly distant from "safe haven"? )

Robert Mitchnick attempts to break the market myth that "Bitcoin is a risky asset", believing that this perspective mainly stems from misleading narratives within the industry. Essentially, Bitcoin should be viewed as a unique store of value.

As institutional funds continue to pour in, Bitcoin's role as "digital gold" will further solidify, and the market's perception of its risk attributes may need to be reassessed.

This article states that Bitcoin is not a risk asset! A BlackRock executive urges not to label and mislead the market: characteristics do not match, first appeared in Chain News ABMedia.