by aria-crypto.com
May 4, 2025 at 20:51
Bitcoin's Rising Status: BlackRock Declares It Too Risky Not to Own
In a compelling shift, BlackRock has revealed that Bitcoin is becoming too risky for institutional investors to overlook.
Robbie Mitchnick, head of digital assets at BlackRock, articulated that Bitcoin's correlation with tech stocks heavily influences its appeal to these investors.
He noted that a low or negative correlation with severe market downturns could position Bitcoin as a vital hedging tool in institutional portfolios.
Mitchnick emphasized the evolving dialogue among investors, suggesting a transition from viewing Bitcoin as overly risky to considering it a strategic necessity.
This shift occurs as Bitcoin shows signs of decoupling from equities, fostering perceptions of it as a more stable investment.
BlackRock's entry into the crypto space highlights a broader acceptance of Bitcoin, indicated by the launch of the Ishares Bitcoin Trust earlier this year.
CEO Larry Fink’s transformation from a Bitcoin skeptic to an advocate mirrors Wall Street’s changing attitude towards cryptocurrencies.
Renowned investor Kevin O’Leary corroborates this sentiment, labeling Bitcoin as the cornerstone of crypto investments and pivotal for institutional capital inflow.
O’Leary projects that Bitcoin's decoupling from traditional equities coupled with regulatory clarity could drive its price towards $100,000.
As institutions adapt to these shifts, Bitcoin is poised to secure its place as an essential asset in diversified portfolios.
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