BlackRock Endorses Bitcoin Over Gold as Superior Institutional Hedge Amid Growing Institutional Investment

Published: 2025-05-28 23:52:57 |

BlackRock’s Head of Digital Assets, Robert Mitchnick, has reaffirmed the asset manager’s strong conviction in Bitcoin as a superior hedge compared to gold. Speaking at the Bitcoin 2025 Conference, Mitchnick emphasized the rapid success of BlackRock’s iShares BTC Trust (IBIT) and highlighted growing institutional adoption, with model portfolios now allocating 1-2% to Bitcoin following extensive research. Notably, he cited a rising trend in global Bitcoin investment, especially from offshore channels like Asia, and pointed out Bitcoin’s low correlation to equities. Mitchnick underlined that while Bitcoin shares a role with gold as a portfolio diversifier, it offers a higher upside and lower downside risk due to its digital nature and efficiency. He observed that short-term volatility often prompts accumulation by long-term holders treating Bitcoin more as a monetary hedge than a speculative asset. Mitchnick also stated that Bitcoin remains uniquely positioned among digital assets for ETF offerings and expects its correlation with other cryptocurrencies to decline further. With bipartisan regulatory momentum in the U.S., BlackRock anticipates further institutional inflows into Bitcoin. At the time of his remarks, Bitcoin traded near $108,879, approaching key resistance. BlackRock’s public backing is likely to reinforce Bitcoin’s legitimacy as a reserve asset and drive additional institutional and passive investment, which could impact price and market sentiment.

Bullish

BlackRock’s strong endorsement of Bitcoin as a superior hedge over gold, combined with data showing rapid institutional adoption and successful ETF products like IBIT, provides a positive signal for the cryptocurrency market. The news highlights increased allocation by institutional portfolios, robust global inflows—particularly from Asia—and a trend of long-term holding behavior among investors. The expectation of decreased correlation with other digital assets, along with bipartisan U.S. regulatory momentum, all point toward sustained demand and legitimization of Bitcoin in traditional finance. Historically, similar endorsements and ETF adoption have led to significant price appreciation and increased market participation, suggesting that this development is likely to boost both short-term sentiment and long-term investor confidence in Bitcoin.