BlackRock, the world's largest asset manager, believes that Bitcoin is neither a "risk-on" nor a "risk-off" asset. According to analysts at BlackRock, Bitcoin is viewed by clients as insurance against a potential U.S. debt crisis and has little exposure to macro variables that affect other asset classes. Its limited supply, global nature, and ease of transfer make it attractive as a hedge against potential future events affecting the U.S. dollar. BlackRock sees Bitcoin as a unique diversifier that can hedge against fiscal, monetary, and geopolitical risks. However, the report acknowledges that Bitcoin's behavior as a safe haven asset has not consistently aligned with expectations in recent years. The analysts attribute this to Bitcoin's immaturity as an asset and its high saleability during panic periods. Despite the risks associated with regulatory changes and its status as an emerging technology, BlackRock does not believe these risks are shared with other investment classes.
- Content Editor ( decrypt.co + 1 more )
- 2024-09-18
BlackRock Says Clients Are Buying Bitcoin to Hedge Against US Debt Crisis