BlackRock digital asset head talks how clients approach crypto

Crypto bulls and investors are convening in New York City as part of Bitcoin (BTC-USD) Investor Day. Yahoo Finance’s Brad Smith is joined by BlackRock Head of Digital Assets Robert Mitchnick — whose firm manages the iShares Bitcoin Trust (IBIT) ETF — to talk about educating clients on exposure to crypto assets

“What we’re seeing is that investors are resoundingly choosing IBIT for bitcoin access… That is a combination of investors who are new to bitcoin and those who maybe held exposure in a different form historically. What our clients, I think, are most focused on is trying to understand risks, upside, downside, thoughts about portfolio construction…” Mitchnick explains.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s note: This article was written by Luke Carberry Mogan.

Video Transcript

[INTRO PLAYING]

BRAD SMITH: Here with Robbie Mitchnick, who is the head of digital assets over at BlackRock. Thanks so much for taking the time here with us.

ROBERT MITCHNICK: Yeah, thanks for having me on.

BRAD SMITH: Absolutely. I mean, first of its kind event that we’re seeing here in New York for Bitcoin Investor Day. You got to tell us, for BlackRock and how you’re approaching, and looking at, and exploring Bitcoin and cryptocurrency more broadly, I mean, how did the conversation really matriculate within the firm?

ROBERT MITCHNICK: Yeah. Well, this has been a multi-year journey for us, starting back really 2016 kind of time frame, and as this space and this asset class has evolved over multiple years from an infrastructure perspective, from a regulatory perspective, from a client interest and focus perspective, you’ve seen our strategy kind of evolve with that to take us to the point where we are today.

BRAD SMITH: And so when you think about education and how you go out to so many of your clients that are out there, what those discussions entail? I mean, what is the education that they already come forward with, and then where do you kind of take it one step further as well?

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ROBERT MITCHNICK: Yeah. Well, our clients are kind of at all stages of the journey, right? As you can imagine. So, with some clients, you know, they’re at a very advanced stage. They already hold Bitcoin, sometimes positions in multiple crypto assets, and they’re looking for our perspectives on market dynamics and what we’re seeing in terms of portfolio construction and other considerations, and others are much earlier in the journey. This is a new topic for them, and they want to understand kind of the fundamentals and the technology and how it works. And so we have those conversations across the spectrum.

BRAD SMITH: What are you hearing from your clients right now with regards to interest, in Bitcoin interest in cryptocurrency more broadly and whether they want to be crypto touching specifically or whether they want to go into a more traditional asset like an ETF perhaps?

ROBERT MITCHNICK: Right. Right. Well, what we’re seeing is that investors are resoundingly choosing IBIT for bitcoin access. Right? That’s a combination of investors who are new to bitcoin and those who maybe held exposure in a different form historically. What our clients, I think, are most focused on is trying to understand risks, upside, downside, thoughts about portfolio construction, how to think about the risk in a larger diversified portfolio context. So those are the kinds of discussions we’re having a lot.

BRAD SMITH: Just lastly, while we have here. A lot of people are wondering what’s the next big inflection point for bitcoin for cryptocurrency more broadly? What is that from your perspective, what should we be watching for?

ROBERT MITCHNICK: Yeah. Well, I don’t think there’s maybe one specific thing that we’re looking at. I think it’s a combination of over time as more clients, more investor types across various, you know, archetypes in some of the big institutions, their education and research journey, some of our Wealth Advisory Partners, they’re on their own for diligence and education journey, and those will slowly play out. In the early days, it’s been a lot of end investor direct and ultra high net worth. And that’s going to evolve as more investors get comfortable with the asset.

BRAD SMITH: Robbie, thanks so much for taking the time here today. And bustling and busy Bitcoin Investor Day here. We know you’ve got a packed schedule. Can’t wait to hear from you on stage.

ROBERT MITCHNICK: Yeah, thanks for having me.

BRAD SMITH: Absolutely. Thanks for taking the time.