BlackRock, the world’s largest asset manager with over $10 trillion under management, has labeled Bitcoin a “safe haven” for investors during turbulent times. In a white paper published on Wednesday, September 18, the firm describes Bitcoin as a “unique diversifier” capable of shielding against fiscal, monetary, and geopolitical risks.
The report, co-authored by three BlackRock executives—Robert Mitchnick (Head of Digital Assets), Samara Cohen (Chief Investment Officer for ETFs and Index Investments), and Russel Brownback (Global Head of Macro Positioning for Fixed Income)—explains that Bitcoin’s decentralized structure makes it the first “truly open-access monetary system.”
**No Traditional Counterparty Risk**
After the U.S. Federal Reserve announced a 0.5% interest rate cut on Wednesday, Bitcoin responded positively, rising by nearly 4% over the following two days. As of 10:40 a.m. on Friday, it was trading at €56,670.
BlackRock also highlights that Bitcoin does not carry “traditional counterparty risks” and operates independently of any centralized system.
“Its characteristics make it largely immune to several major macroeconomic risks, including banking crises, sovereign debt defaults, currency depreciation, geopolitical instability, and other country-specific political and economic challenges,” the report explains.
In conclusion, while Bitcoin may behave as a high-risk asset in the short term, BlackRock suggests that, over the long run, it can serve as a valuable tool for diversifying against fiscal, monetary, and geopolitical uncertainties that investors may face.
