$BTC

Bitcoin is flipping the institutional narrative as Blackrock warns it’s no longer about risk exposure—but the greater risk of missing out on crypto’s unstoppable financial ascent.

Blackrock Pushes Bitcoin Into Spotlight: Could Be Too Risky Not to Own Any in Today’s Market

Robbie Mitchnick, head of digital assets at Blackrock, the world’s largest asset manager, emphasized during the Token2049 crypto conference that institutional views on bitcoin could dramatically shift if the cryptocurrency proves it can behave independently of risk-on equities. In a series of remarks shared with DL News following his appearance at the event, Mitchnick underscored a pivotal factor that could drive bitcoin’s adoption in traditional finance: its correlation to tech stocks. He stated:

The correlation between bitcoin and tech stocks is going to be an absolutely critical driver. If bitcoin trades more like a tech stock, it is not very interesting to institutions.

The Blackrock head of digital assets further explained that BTC’s potential role in portfolio construction hinges on its performance during market downturns. If the asset can exhibit lower or even inverse correlation to what he referred to as “left tail” events—severe and rare negative market occurrences—it could gain substantial appeal as a hedging tool.

He stressed that if BTC trades with low or even negative correlation to left tail events, “then it becomes potentially a very important portfolio asset to all manner of institutional portfolios.”

In his concluding observation, Mitchnick suggested that bitcoin could transition from a speculative bet to a strategic necessity in the eyes of large investors, stating:

The conversation goes from, ‘Is this too risky for us?’ to ‘Might it be risky not to own any?’