According to recent statements from representatives of BlackRock, Bitcoin (BTC) is starting to play a more important role in institutional investment portfolios. Predictions indicate a possible change in its correlation with tech stocks.
The Role of Bitcoin in Institutional Investments
Robbie Mitchnick, head of digital assets at BlackRock, noted that if Bitcoin begins to diverge from its correlation with tech stocks, 'not owning BTC becomes riskier.'
Expert Quotes on Bitcoin
Mitchnick also added: 'Bitcoin's correlation with tech stocks will be a critical determinant for institutional investors. If Bitcoin behaves like a tech stock, it won't be very attractive to institutions. But if it shows low or negative correlation, it could become a very important asset for many institutional portfolios.'
BlackRock's Investment Attraction Strategy
Furthermore, Bloomberg ETF analyst Eric Balchunas, who moderated the panel with Mitchnick, stated: 'Large institutions are looking for digital gold. They want a hedge against inflation and market volatility, an indestructible currency.' BlackRock CEO Larry Fink has long described Bitcoin as 'digital gold,' which is central to the company's strategy to attract investors to its Bitcoin ETF launched in January 2024.
Thus, BlackRock's statements emphasize the significance of Bitcoin as an asset for institutional investors, especially in light of its potential decrease in correlation with tech stocks. This could change the game in the digital asset market.
