Latest news with #RobbieMitchnick
CTV News
4 days ago
- Business
- CTV News
‘Huge traction' in use case for stablecoins, says BlackRock's head of digital assets
Robbie Mitchnick, head of digital assets at BlackRock, shares his outlook of Bitcoin amid economic challenges and why institutional investors are betting on it. Sorry, we're having trouble with this video. Please try again later. [5006/404] BlackRock's head of digital assets says he is seeing broader enthusiasm for the use case of stablecoins. BlackRock has many Bitcoin exchange traded products (ETP), with around $70 billion in assets around the world, Robbie Mitchnick said in an interview with BNN Bloomberg Monday. 'So that's been a pretty extraordinary story, having started just in January of 2024 when we launched the first... the resonance that this has had with investors of all types, so talking about retail investors, institutional, wealth advisors, (it) has been pretty extraordinary,' he said. Stablecoins are a type of crypto asset designed to maintain a value relative to an asset, according to the U.S. Securities and Exchange Commission. Mitchnick said the emergence of Bitcoin made it possible to move value around the world in real time at a near zero cost for the first time. 'Now we're seeing huge traction in that use case from stablecoins, which are in various ways a better fit for the purpose of day-to-day money movement transactions,' he said. 'There's still a little bit of value transfer happening through Bitcoin, but the majority of it's similar to gold, where there's a little bit of usage of it in sort of industrial applications, but the majority of it is being held as the store of value asset.' BlackRock launched the iShares Bitcoin ETF in mid January on the CBOE Canada Exchange, trading under the symbol IBIT. 'So basically, what this is doing is giving Canadians ability to hold through that same value proposition of Bitcoin exposure and the convenience of an ETP, but now in a Canadian listed product on CBOE Canada,' he said. Mitchnick added that BlackRock's Investment Institute recommended earlier this year that allocating about one to two per cent of a portfolio to Bitcoin is a 'reasonable range' for investors looking to get exposure in that area.
Yahoo
19-03-2025
- Business
- Yahoo
Recession Would Be 'A Big Catalyst For Bitcoin,' BlackRock's Head Of Digital Assets Says
Robbie Mitchnick, Global Head of Digital Assets at BlackRock (NASDAQ:BLK), said a potential U.S. recession could act as a powerful driver for Bitcoin's (CRYPTO: BTC) next bull cycle, citing liquidity injections and fiscal responses as key catalysts. What Happened: Speaking with Yahoo Finance on Wednesday, Mitchnick explained that while Bitcoin has historically been perceived as "digital gold," recent price action has fallen short of this reputation. Despite some optimism following policy shifts in Washington, Bitcoin's performance has been subdued, currently hovering near $83,550 after giving back its late-2024 rally gains. "The crypto market may have gotten ahead of itself with expectations about how fast deregulation and other catalysts would arrive," Mitchnick said. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share! Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share. He noted that while Bitcoin rose sharply into the end of 2024, the early part of 2025 has been marked by modest ETF outflows and cautious sentiment. Mitchnick argued that Bitcoin's fundamental characteristics—its scarcity, decentralization, and independence from traditional monetary systems—position it as a long-term hedge, especially during periods of economic stress. "A recession would be a big catalyst for Bitcoin," he said. "It's long liquidity, meaning it benefits from increased fiscal spending, deficit accumulation, and lower interest rates—all typical features of a recessionary environment." While gold has recently surged to record highs amid growing economic uncertainty, Bitcoin has struggled to mirror that trend. Mitchnick attributed this partially to short-term correlations and how the crypto market narrative has leaned into viewing Bitcoin as a "risk-on" asset. "There's a self-fulfilling element to how Bitcoin is being traded in the short term," he It Matters: He also discussed ETF market dynamics, highlighting that recent Bitcoin ETF outflows have been driven primarily by hedge funds unwinding spot-futures arbitrage trades. "The core long-term holders are still in," he explained, pointing to continued interest from institutional investors despite the volatile price action. Commenting on the Trump administration's establishment of a U.S. Strategic Bitcoin Reserve, Mitchnick said, "It's a strong signal of support for Bitcoin's uniqueness within the digital asset space, though the specifics of how the government might accumulate Bitcoin remain to be seen." While acknowledging market headwinds, Mitchnick emphasized that many professional investors see the current downturn as an opportunity. "Some of the most sophisticated Bitcoin accumulators we speak with are treating this dip as a buying opportunity," he added. Despite challenges facing the broader crypto industry—including recent hacks and concerns about regulatory clarity—Mitchnick remained optimistic about Bitcoin's long-term role as a portfolio hedge against economic instability. Read Next: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Recession Would Be 'A Big Catalyst For Bitcoin,' BlackRock's Head Of Digital Assets Says originally appeared on Sign in to access your portfolio
