Bitcoin should be valued as "an uncorrelated asset that benefits when the world becomes more chaotic," according to Jay Jacobs, Head of US Equity ETFs at BlackRock, shared in an interview on Thursday.
"In the long term, crypto has no connection with US tech stocks," Jacobs said, emphasizing that short-term market tensions can obscure this difference, but "the long-term correlation between US stocks and Bitcoin is only around 2-3%".
He argues that factors driving stock prices such as "higher growth, higher certainty, lower geopolitical risks" are the opposite of what drives Bitcoin.
"Bitcoin thrives when there is more instability and when people seek something that behaves differently, so essentially, it should be viewed as an uncorrelated asset".
At the time of Jacobs' statement, BTC price was trading below $94,000. Since spot ETFs were approved at the beginning of last year, BTC is now trading over 150% higher.
Jacobs directly links Bitcoin price behavior to investment capital flows.
"We believe that in the long term, if the trend of increasing global instability continues, assets like gold and Bitcoin will continue to appreciate".
He notes that investors are adjusting their portfolios in this direction:
"We have seen significant capital inflows into gold ETFs. We have also seen large capital flows into Bitcoin, all because people are seeking assets with different behaviors".
The biggest beneficiary is BlackRock's own iShares Bitcoin Trust (IBIT), which on April 23 recorded $643 million in net capital flow — the highest in a day since January — raising the fund's total assets to around $54 billion.
"If you look at central banks worldwide, the trend of asset diversification beyond just holding dollars has been happening for decades... The shift from just holding dollars to holding gold and now considering other assets like Bitcoin is a trend that has been forming for many years".
Central banks' gold purchases are evidence of this shift: net purchases reached over 1,044 tons in 2024, marking the third consecutive year exceeding 1,000 tons — double the decade's average.
He links these reserve movements to the "massive forces" framework BlackRock introduced in 2023, which identifies geopolitical fragmentation as a long-term driver of investment returns.
"That massive force is clearly manifesting through policies like reshoring supply chains back to the United States, and I believe this fragmentation has directly contributed to the rise of assets like Bitcoin, as people recognize increasing geopolitical instability leading to a need for alternative assets".
Disclaimer: The article is for informational purposes only, not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment choices.
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