BlackRock, the world’s largest asset manager, recently shared its perspective on Bitcoin and Ethereum. According to the company, Bitcoin has become a safer asset, while Ethereum remains a more speculative investment. Let’s break down what that means.
BlackRock says Bitcoin is “Risk Off” as a global monetary alternative, while ETH is “Risk On” as a blockchain play
Bitcoin is money, the rest of “crypto” is just a gamble. pic.twitter.com/XiSnYiMELY
— Bitcoin News (@BitcoinNewsCom) February 11, 2025
Bitcoin: A Digital Store of Value
BlackRock views Bitcoin as a stable asset similar to gold. Because Bitcoin has a limited supply and increasing institutional adoption, more people see it as a reliable way to protect their wealth. When inflation rises or economic uncertainty grows, Bitcoin often becomes a preferred option for those looking to preserve value.
In September of last year, Robbie Mitchnick from BlackRock already pointed to the same in an appearance on Bloomberg, saying that Bitcoin has been wrongly labeled as a “risk-on” asset. “When you look at Bitcoin fundamentally, the long-term drivers of BTC are very different from those for stocks and other risk assets. In some cases, the situation is even completely opposite,” Mitchnick told Bloomberg.
What About Ethereum?
Ethereum plays a different role in the market. As the leading platform for smart contracts and decentralized applications (dApps), Ethereum has a lot of potential. However, BlackRock considers it a riskier investment. Ethereum’s value depends on the success of blockchain technology and decentralized finance (DeFi). While it offers the possibility of high returns, it also carries greater uncertainty.
What Does This Mean for Investors?
BlackRock’s view highlights the evolving role of cryptocurrencies in a portfolio:
- Bitcoin can act as a defensive investment, focused on protecting value.
- Ethereum fits into a more aggressive investment strategy, aimed at growth potential.
The perspective that BlackRock has shared is a good example of how the crypto market is maturing. Different assets serve different purposes, allowing investors to balance risk and reward based on their financial goals.
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