Key Points
- BlackRock presents Bitcoin (BTC) as a ‘risk-off’ asset and Ethereum (ETH) as a ‘risk-on’ asset.
- BTC is viewed as a hedge against declining trust in governments and fiat currencies, while ETH is seen as a speculative bet on blockchain technology.
BlackRock, the largest asset manager globally, recently presented two different pitch decks for Bitcoin (BTC) and Ethereum (ETH) at a digital assets conference in Brazil.
BTC and ETH: Different Assets
Robbie Mitchnick from BlackRock presented BTC as a ‘risk-off’ asset, akin to gold. Conversely, ETH was presented as a ‘risk-on’ asset, comparable to U.S. stocks.
BTC was praised for its potential as a global monetary alternative and a hedge against declining trust in governments and the devaluation of fiat currencies. ETH, however, was framed as a speculative bet on the adoption of blockchain technology, an investment Mitchnick likened to 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.”
BlackRock’s Influence
BlackRock’s perspective is significant due to its trendsetting nature and wide accreditation. Alongside Grayscale, these asset managers are believed to be responsible for the US shift and final approval of US spot BTC ETFs.
BlackRock’s BTC ETF, iShares Bitcoin Trust [IBIT], had a cumulative netflow of $21.5 billion with nearly $23 billion in net assets at the time of writing. Meanwhile, its ETH ETF, ETHA, has netted $1.1 billion in total inflows since it began trading in July.
Therefore, BlackRock could potentially influence other investors’ perception of the sector. Some market observers believe the message is clear — Bitcoin is money, while the rest of crypto is speculative.
At the time of writing, 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.