Even though Bitcoin has been highly correlated as of late with the price moves of US equities, BlackRock Inc.’s head of digital assets says it’s a likely misnomer to call the cryptocurrency a “risk-on” asset.
Stocks, commodities and high yield bonds are generally considered risk-on assets since they usually perform well during periods of market optimism and economic expansions. Assets such as gold are often popular with investors during times of uncertainty.
“Gold shows a lot of the same patterns,” BlackRock’s Robbie Mitchnick said in a Bloomberg Television interview Tuesday. “Where you have these temporary periods, but long term [correlation is] close to zero.”
No single country or government controls Bitcoin, and it’s scarce and decentralized, he said.
“When we think about Bitcoin, we think about primarily as an emerging global monetary alternative,” Mitchnick said. “Scarce, global, decentralized, non-sovereign asset. And it’s an asset that has no country-specific risk, that has no counterparty risk.”
BlackRock runs exchange-traded funds, investing in Bitcoin and Ether. But while many investors view Bitcoin as digital gold — something that holds value at times of stress — the narrative for Ether among many institutional clients “is a little less clear,” Mitchnick said. Ether is used by a variety of apps on the Ethereum blockchain.
Bitcoin is up 49% so far this year, and Ether has appreciated 15%, largely thanks to the approval of ETFs holding both tokens earlier this year.
Firms continue their quest to attract and retain the best advisor teams.
A survey from TacticalMind AI found 69% of advisors say a high-quality AI platform that makes investment recommendations and constructs portfolios is worth $500 monthly, while research-only tools are valued closer to $250.
The alts tech provider's latest integration lets advisors query fund data and surface portfolio insights without leaving their primary workspace.
The regulator is scrutinizing how some firms oversee concentrated positions in complex "worst-of" notes – and wants answers.
Meanwhile, Carson Group fully integrates a decades-old practice in Phoenix, Arizona, and Triad Wealth touts its 5x growth to hit a $2 billion milestone.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
