BlackRock Sees Healthy Decoupling of Bitcoin from Equities

BlackRock's head of digital assets Robbie Mitchnick says Bitcoin is decoupling from equities, which he believes is 'healthy' for its potential as a diversifier and hedge against portfolio risks. In July, Bitcoin outperformed tech stocks during their pullback, with the PHLX Semiconductor Index falling 15.29% and the Nasdaq Composite losing 2.56%, while Bitcoin gained 4.68%. The correlation between BTC and tech stocks has weakened but remains positive.

The US spot Bitcoin ETFs saw inflows of $853.5 million in the week to August 7, their largest total since mid-April, with BlackRock's iShares Bitcoin Trust taking about $693 million of that amount. The fund's cumulative inflows have passed $52 billion since launch.

Mitchnick described the investor base for these funds as 'fundamental, long-term and buy-and-hold', noting that Bitcoin has been through five boom-and-bust cycles, each ending higher than the last.