Bitcoin Remains Diversifier as AI Opportunities Shift Beyond Tech
BlackRock's U.S. Equity ETF Head, Jay Jacobs, believes that Bitcoin's role as a portfolio diversifier remains intact despite its growing institutional ownership.
Jacobs made this statement during an interview on the Anthony Pompliano podcast, where he also discussed the opportunities presented by Artificial Intelligence (AI).
According to Jacobs, AI's physical buildout is creating a mismatch between demand and supply. He noted that large language models can write code for themselves to improve, but the physical inputs needed to support this growth take years to materialize.
Jacobs argued that too many people view AI as a tech theme, when in fact it has implications for various sectors such as healthcare, law, and consumer goods. He stated that some of the best opportunities in AI lie outside of tech, in materials, utilities, and digital infrastructure.
The BlackRock executive also highlighted the importance of physical inputs in the development of AI, citing the example of power companies and data centers. The firm has created separate products to capture these opportunities, including power and digital infrastructure ETFs.