Bitcoin Pitched as Risk-Off Asset by BlackRock Exec
2024-09-25

Robbie Mitchnick, head of digital assets at financial titan BlackRock, has opined that Bitcoin, the flagship cryptocurrency, should be treated as a risk-off asset. 
The BlackRock executive views it as an emerging global monetary alternative that offers such properties as scarcity and decentralization. 
He has rejected the popular talking point about Bitcoin being a risk-on asset that is supposed to trade in tandem with equities. He argues that Bitcoin's price action is driven by different factors. 
Mitchnick noted that Bitcoin's long-term correlation with stocks is actually close to zero despite short-term spikes. 
Speaking of the recent approval of options for BlackRock's IBIT, Mitchnick stated that this product would make it possible to trade and hedge risks in a more "flexible" way.
Debunking Coinbase rumors 
Mitchnick has also addressed the recent conspiracy theory involving Coinbase, the leading US exchange. 
As reported by U.Today, some members of the Bitcoin community started spreading rumors about Coinbase buying "paper Bitcoin" on behalf of BlackRock. 
A recent BlackRock amendment requires withdrawals to be processed within 12 hours directly on-chain.
However, Coinbase's Brian Armstrong was quick to shut down the rumors, pointing to the fact that all ETF mints and burns are actually settled on-chain.
During his most recent interview, Mitchnick has clarified that "nothing of significance has changed here" when addressing the Coinbase rumors. He downplayed the significance of the recent amendment, claiming that it was merely "operational fine-tuning." 