BlackRock explores crypto with ETFs and tokenization plans
BlackRock has been exploring cryptocurrency and digital assets since 2016, according to Robbie Mitchnick, Head of Digital Assets at the firm.
The company's involvement grew notably around 2021, influenced by developments in market infrastructure, a shift in market sentiment, and rising client interest.
Mitchnick explained that three main factors contributed to BlackRock’s increased focus: improved market infrastructure, a broader recognition of crypto's potential, and steady client interest.
"The evolution really started to accelerate in the 2021-2022 timeframe," Mitchnick stated, highlighting the launch of Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) ETFs as important steps in this direction.
Despite Bitcoin's reputation as a "risk-on" asset, Mitchnick addressed misconceptions by referencing cases like the 2023 Silicon Valley Bank crisis, where Bitcoin acted more as a hedge.
“The main reason it stood out was that the crypto research community didn’t have time to overcomplicate it,” he noted, suggesting that Bitcoin's role in markets can vary depending on conditions.
BlackRock aims to change such perceptions through education, helping clients better understand digital assets.
Mitchnick also discussed the firm's interest in tokenization, suggesting that "tokenization, not Bitcoin" is becoming a practical approach for adopting Blockchain technology.
While the future of tokenized assets is still uncertain, BlackRock is committed to developing the necessary infrastructure to support potential growth in this area.
“It would be strange if, 10 years from now, we only had seven tokenized funds. It’s more likely we’ll have none, or many,” Mitchnick commented, indicating the uncertain but possible expansion of tokenized assets in the financial landscape.
The firm’s focus on evolving market dynamics and infrastructure underscores its measured approach to the growing field of digital assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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