Key Points
- BlackRock presents Bitcoin (BTC) as a ‘risk-off’ asset, similar to gold.
- Ethereum (ETH) is pitched by the asset manager as a ‘risk-on’ asset, akin to US stocks.
BlackRock, the globally recognized asset manager, has recently offered distinct perspectives on Bitcoin (BTC) and Ethereum (ETH).
These viewpoints were shared during a digital assets conference in Brazil.
Bitcoin and Ethereum: Different Assets
BlackRock’s Robbie Mitchnick described BTC as a ‘risk-off’ asset, comparing it favorably to gold.
Conversely, Mitchnick presented ETH as a ‘risk-on’ asset, likening it to U.S. stocks.
BTC was lauded as a global monetary alternative and a reliable hedge against falling trust in governments and the ongoing devaluation of fiat currencies.
ETH, on the other hand, was presented as a speculative investment on blockchain technology adoption, similar to investing in US stocks.
Mitchnick stated, “On one hand, you have BTC, a commodity like gold and an alternative to stocks and bonds. Ethereum, more of a long-term technology bet that this blockchain will provide more use cases and more value to the economy going forward.”
Community Reaction and Future Projections
Many in the crypto community agreed with Mitchnick’s presentations, emphasizing that BTC is ‘money’ with less inflationary pressure than fiat currencies.
However, the presentations also highlighted that ETH is not ‘money’. ETH’s inflation has increased since the introduction of Blobs, making it less of an “ultra-sound money.”
If the projections are accurate, BTC could rally more during future geopolitical tensions, while ETH could decline in such scenarios.
BlackRock’s views are significant as it is a trendsetter and highly respected. Along with Grayscale, the asset managers are considered to be responsible for the US shift and final approval of US spot BTC ETFs.
Since the ETFs debuted, BlackRock’s ETFs have outperformed every alternative offering and crossed key milestones.
At the time of writing, its BTC ETF, iShares Bitcoin Trust [IBIT], had a cumulative netflow of $21.5 billion with nearly $23 billion in net assets.
Since it began trading in July, BlackRock’s ETH ETF, ETHA, has netted $1.1 billion in total inflows.
Therefore, BlackRock, as the world’s largest asset manager, could influence how other investors view the sector. According to some market observers, the message seems clear — Bitcoin is money, while the rest of crypto is speculative.
Currently, BTC was valued at $62K, down 5% on the weekly charts. Conversely, ETH was valued at $2.4K, down 8.5% over the same period.
