Today, the head of the digital resources of Blackrock Robert Mitchnick, at the Bloomberg Etf Qi, spoke of what is really guiding the wave in Bitcoin Etf.
“These are many things that unite. Outside the gate was the demand for retail sale and investors …” said Mitchnick. “Now, more recently, we have only seen a constant progress of a greater adoption of wealth consultants, a more institutional adoption. It was a mix of people who is the first time they have invested in anything in the cryptographic space. And then, on the other hand, you have many people who have been invested in Bitcoin for a long time and are taking advantage of the ETP envelope.”
When it comes to institutional adoption, Mitchnick says that we are still early. The approvals of the ETF usually take years, but some companies are rapidly tracing the process.
“We saw that fast monitoring from a number of companies and we talk about fast monitoring,” said Mitchnick. “We are talking about, you know, quarters, not months. And slowly but surely, I think, an acceleration, in particular in the last two months of more important companies that reduce barriers, granting approval of their consultants to use them.”
Bitcoin’s volatility has recently decreased, making more attractive for institutions looking for diversification. However, it remains volatile, but its risk and performance profile differs from traditional activities.
“There is no doubt that it is a relatively new technology,” said Mitchnick. “Even if volatility has decreased, it is still volatile, but at the same time its risk and return drivers are significantly different from most of the rest of the activities in a traditional portfolio, and this is important. And therefore when the institutions look very much, they focus strongly on that correlation and if it is zero or even in some negative periods, because then the goalkeeper is very warned.”
About a dozen Bitcoin Etf currently compete on the market and the demand remains strong.
“Well, many of them have been, you know, even very success,” said Mitchnick. “Obviously, it was the leader in the category with a discreet margin. But there was such a request that, you know, it was exciting and there are many products in space and this is a good thing.”