BlackRock sees Bitcoin as a “unique diversifier” for investors

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Asset management giant BlackRock has said that bitcoin is a “unique” portfolio diversifier for investors in the face of fiscal, monetary and geopolitical risk factors.

“bitcoin’s nature as a scarce, non-sovereign, decentralized global asset has led some investors to consider it as a safe haven option in times of fear and around certain geopolitically disruptive events,” BlackRock, which has more than $10 trillion in assets under management, said in a Sept. 17 statement. bitcoin-a-unique-diversifier.pdf”>report“bitcoin can be seen as an increasingly unique diversifier.”

BlackRock says bitcoin is fundamentally separate from other asset classes

BlackRock also said that although the leading cryptocurrency is highly volatile, it is fundamentally separated from other asset classes in the long term. The asset manager added that btc is the first decentralized alternative to the traditional monetary system that has achieved widespread adoption.

BlackRock just published a nine-page whitepaper defending the bitcoin ETF as a “unique diversifier” that can protect against fiscal, currency, and geopolitical risks, which also includes a section called “bitcoin’s Path to a $1 Trillion Market Cap” Read the full article here:… image.twitter.com/mRzDpw4aSP

— Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1836440460442898794?ref_src=twsrc%5Etfw”>September 18, 2024

bitcoin also “has no traditional counterparty risk, is not dependent on any centralized system, and is not driven by the fortunes of any country,” the report said.

The report comes after the asset manager's CEO Larry Fink changed his stance on the leading cryptocurrency, saying he was wrong to dismiss it. bitcoinSince this pivot, the company has published a series of research papers explaining the potential role bitcoin could play in investors’ portfolios.

BlackRock is also among several other US asset managers that launched a spot bitcoin ETF (exchange-traded fund) this year.

IBIT flows fall in the last 2 weeks

BlackRock has reported relatively minimal flows. will go away during the last fortnight. Data from btc/”>Farside Investors shows that the fund recorded zero inflows for almost every day during this period except for September 16 and September 9. On September 16, IBIT recorded $15.8 million in net inflows, while it saw $9.1 million flow out of its reserves on September 9.

Despite minimal flows, BlackRock's IBIT maintains a comfortable lead in terms of total inflows since the U.S. spot bitcoin ETFs launched in January.

Since the beginning of the year, IBIT has received $20.924 billion in its fund. Fidelity's FBTC has recorded the second largest net inflow so far, with reserves amounting to $9.704 billion.

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