Today, at the Token2049 conference in Dubai, Robert Mitchnick, head of digital assets at Blackrock, came up with some insights that capital has once again been strongly flowing into spot Bitcoin ETFs, but people investing are changing significantly.
Mitchnick announced in a panel, following Vaneck CEO Jan Van Eck and CME Group’s Giovanni Vicioso, the conversation focused on the evolving investor landscape of the crypto market.
Mitchnick explained that when the live Bitcoin ETF was first launched, most of the inflows came from retail investors, including some high net worth individuals, with positions at $100 million. But as time goes by, the composition changes. “Each quarter, the percentage of retail clients owned by them has dropped, while the percentage of institutional and wealth consulting clients has risen,” he said in the panel. He noted that the shift reflects longer adoption cycles for institutional investors. “This is not a switch case.”
The return on interest in Bitcoin seems to be driven by a wider range of macroeconomic problems. Last week, Jay Jacobs, head of Blackrock’s US-themed and active equity ETF, provided a concise explanation: “Bitcoin thrives when you have more uncertainty.” In times of market trouble or geopolitical instability, investors tend to seek assets related to the risks of any country or central bank – Bitcoin is increasingly seeing Bitcoin. This sentiment echoes the long-term view of BlackRock CEO Larry Fink, who repeatedly advises Bitcoin to provide investors with a modern safe haven.
During the panel discussion, Mitchnick also challenged the idea that Bitcoin is only used as a leverage agent for technical stocks. “It doesn’t have any fundamental meaning,” he said, although he admits that if it is repeated frequently, the narrative becomes “self-realization.”
Mitchnick addresses issues regarding the Altcoin ETF and the possible regulatory changes under the new SEC. “Those who think ‘everything goes’ will be disappointed,” he said, warning that while the framework may develop, they may also introduce new restrictions. For now, Bitcoin remains a major asset of interest.
“The interest is still the vast majority of Bitcoin,” Mickey concluded.
