Financial giant BlackRock says Bitcoin (BTC) is a unique investment opportunity that offers investors something very different from traditional assets.
BlackRock, a company with more than $10 trillion in assets under management, say in a new report that Bitcoin could act as a hedge against the United States’ mounting debt and other macroeconomic problems.
“While Bitcoin has shown examples of short-term co-movements with stocks and other ‘risky assets’, its longer-term fundamental drivers are starkly different, and in many cases inverse to most traditional investment assets. As the global investment community grapples with rising geopolitical tensions, concerns about the state of US debt and deficits and increased political instability around the world, Bitcoin can be seen as an increasingly unique diversifier against some of these fiscal, monetary and geopolitical risk factors. have to deal with something else in their portfolio.”
The report says the appeal of alternative reserves is increasing due to concerns about the potential impact of US federal deficits and debt on the dollar.
“This dynamic also appears to be taking hold in other countries where debt accumulation has been significant. In our experience with clients to date, this explains a substantial portion of the recent broader institutional interest in Bitcoin.”
BlackRock’s iShares Bitcoin Trust (IBIT) launched earlier this year, alongside other Bitcoin Exchange Traded Funds (ETFs). Bitcoin ETFs give traders exposure to major crypto assets without having to actually buy them.
Bitcoin is trading at $62,098 at the time of writing, up almost 4% in the past 24 hours.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us further X, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
Credit : dailyhodl.com
