BlackRock sees digital assets at critical turning point

Digital assets are poised for robust structural growth – not just as investment vehicles but as strategic assets – fueled by growing institutional participation and regulatory shifts in favor of virtual tokens, said Robbie Mitchnick, head of digital assets at BlackRock on Tuesday.

The US approval of a spot Bitcoin ETF in 2024 marked a structural shift in the crypto market, expanding access to mainstream investors.

"The digital asset sector is currently at a critical turning point. Institutional investors' interest in cryptocurrencies, including Bitcoin, is unprecedentedly high," he said at Crypto & Digital Asset Investment Insight Forum 2025 hosted by The Korea Economic Daily.

Given Bitcoin’s volatility, it is generally allocated in small portions within institutional portfolios.

Nonetheless, it continues to attract pension funds, sovereign wealth funds and insurance firms looking for higher returns and portfolio diversification, Mitchnick said in a presentation prepared for the conference.

“The structural growth of digital assets is becoming full-fledged ... Now, institutional conditions are opening up for US banks to fully participate in areas like Bitcoin custody, trading and prime brokerage,” he said.

"This will play a decisive role in enhancing the maturity and credibility of the cryptocurrency market," he noted, adding that, beyond some US state governments, several countries are discussing holding Bitcoin as a reserve asset.

Bitcoin still makes up more than 60% of the total cryptocurrency market capitalization, while over one million digital tokens have been created.

The world’s largest virtual token is now fundamentally changing the way global financial markets are restructured and investment portfolios are composed, beyond being a mere technological trend, Mitchnick explained.

In December, the Bitcoin price surpassed $100,000 for the first time.

He attributed Bitcoin’s dominance to its structural advantages: a limited supply of 21 million units; efficiency in cross-border transfers and resistance to censorship and seizure.

BlackRock categorizes digital assets into three pillars: traditional cryptocurrencies like Bitcoin and Ethereum; stablecoins; and asset tokenization.

On March 22, BlackRock announced a significant acquisition of 6,450 Bitcoin, valued at $541.8 million, for an average price of around $84,000 per unit, according to Blockchain News.

Write to Doo-Hyun Hwang and Hyeong-Gyo Seo at Cow5361@hankyung.com
 


Yeonhee Kim edited this article.