Hedging Geopolitical Uncertainty with Bitcoin A Perspective from BlackRock

Beijing News:
Jay Jacobs, head of thematic and active ETF at BlackRock, said that Bitcoin is a hedge against geopolitical uncertainty and currency risk. In the first episode of the BlackRock Quick Download Series, Jacobs stated that the digital asset industry is thriving, and investors have been fond of its IBIT ETF since its launch.
“Bitcoin is an emerging asset. Its market is only one-tenth the size of the gold market,” Jacobs said in the video. “As a result, its volatility is high, and it performs somewhat differently from stocks and bonds. Many investors see it as a potential hedge against geopolitical and currency risk. Others see it as a way of adopting blockchain technology in the future. In either case, investors must approach Bitcoin with caution, taking into account the risks and potential returns of the asset.”
Despite the market downturn, BlackRock’s Bitcoin ETF continues to dominate the rankings
Source: CryptoSlate
Since the launch of its spot Bitcoin ETF in January 2024, the price of Bitcoin has soared to a historic high. In March, the leading digital currency reached an ATH of 73,000. BlackRock’s Bitcoin ETF has been the most profitable, followed closely by Grayscale in inflows. BlackRock’s IBIT surpassed Grayscale’s Bitcoin ETF in the last week of May. It is worth noting that Grayscale has converted its Bitcoin trust, which has been trading in the OTC market since 2015.
Now, at the midpoint of the year, cryptocurrency-based ETFs have dominated discussions in the financial industry. Bitcoin was approved for issuance in January, and Ethereum followed suit last month. While the latter has not yet gone live, BTC has proven to be extremely valuable.
However, BlackRock’s promotion of Bitcoin and its IBIT ETF comes at an interesting time, as inflows into all spot Bitcoin ETFs have begun to slow down. The decrease in fund inflows marks a shift from the initial frenzy surrounding ETFs. With the slowdown in Bitcoin demand, the price of the asset has also fallen to a low of $61,000. Additionally, BlackRock and other asset management companies have thrown their ETF hats into Ethereum, with these assets expected to be approved as early as next week.
Many investors see Bitcoin and digital assets as the future of everyday finance, which has sparked interest in these ETFs. BlackRock believes that this interest in the cryptocurrency industry will only grow, especially as alternatives to the US dollar and traditional investments become increasingly popular.