BlackRock, a $9 trillion asset manager company, says Bitcoin can be used as a hedge to protect against geopolitical and global instability. BlackRock called Bitcoin an alternative global currency in a press release. BlackRock says the asset is a good investment. “could serve as a hedge against increasing global disorder and declining trust in governments, banks, and fiat currencies.”
BlackRock’s Bitcoin ETF was one of top-rated ETFs in January 2024. Bitcoin exploded following the release of these funds. It reached a new high of $73,000 by March 2024. The finance industry has been awash with crypto-based ETFs, dominated by Bitcoin and the newly released Ethereum funds.
BlackRock’s Jay Jacobs shared the company’s support for Bitcoin before
Jay Jacobs’, BlackRock’s head of thematic and active ETFs in June, painted a picture similar to this one about BTC being vital for the future of financial services. Jacobs stated that digital assets are exploding and investors love the IBIT ETF. “Bitcoin is a nascent asset. It’s only one-tenth of the size of the gold market,” Jacobs told a reporter in June video.
“Therefore, it has high volatility and behaves a bit differently than stocks and bonds,” Jacobs added. “A lot of investors look at it as a potential hedge against geopolitical and monetary risks. Other investors look at it as a way to play future adoption of blockchain technology. In either case, investors must take a measured approach to Bitcoin, considering both the risks and the potential returns of the asset.”
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Investors see Bitcoin as the next big thing in finance. This is why they are interested in ETFs. BlackRock The interest in cryptocurrency is expected to continue growing, particularly as alternative investments and alternatives to dollars become more popular.
The US dollar’s position is precarious, and cryptocurrencies are seen as a safe alternative to fiat. The US Dollar’s place as the global currency is stable, however there are notable efforts to diversify. In addition, Central Banks around the world have been attempting to diversify their portfolios in order to avoid its imminent failure. They are also embracing digitalized platforms, such as cryptocurrency, for technology.
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Source: watcher.guru