BlackRock, the largest asset manager globally, recently unveiled distinct and contrasting presentations for Bitcoin [BTC] and Ethereum [ETH].
These two presentations were showcased during a digital assets conference conducted in Brazil. BlackRock’s Robbie Mitchnick depicted BTC as a ‘risk-off’ asset, putting it on par with, or even surpassing, gold.
Conversely, ETH was portrayed as a ‘risk-on’ asset, akin to U.S. equities.
Bitcoin: The Currency; Ethereum: The Speculation
The asset management giant lauded BTC as a worldwide monetary substitute and a superb hedge against the eroding trust in governments and the continual debasement of fiat currencies.
In contrast, ETH was highlighted as a speculative investment in the adoption of blockchain technology, an investment that Mitchnick likened to U.S. stocks.
He remarked,
“On one side, you have BTC, acting as a commodity similar to gold and an alternative to equities and bonds. Ethereum, viewed more as a forward-looking technology investment that this blockchain will offer a wider range of applications and greater value to the economy in the future.”
Some members of the crypto community echoed Mitchnick’s assertions, emphasizing that BTC serves as ‘currency’ with lower inflationary pressure compared to fiat currencies, which depreciate annually.
Furthermore, it helped settle the ongoing debate: ETH is not a form of currency. In reality, with the introduction of Blobs earlier this year, ETH’s inflation has increased, reducing its status as “sound money.”
If these forecasts hold true, BTC might witness a surge during future geopolitical tensions, while ETH could experience a decline in such situations.
The perspective provided by BlackRock is significant as it is a trendsetter and highly respected. Alongside Grayscale, these asset managers are thought to have played a crucial role in the shift in the U.S. and the final authorization of U.S. spot BTC ETFs.
Since the inception of the ETFs, BlackRock’s ETFs have outperformed all other offerings and achieved notable milestones.
At the current moment, its BTC ETF, iShares Bitcoin Trust [IBIT], has seen a cumulative net inflow of $21.5 billion, with almost $23 billion in total assets.
That being said, from its initiation in July, BlackRock’s ETH ETF, ETHA, has secured $1.1 billion in total inflows.
As such, the largest asset manager globally may shape the perceptions of other investors towards the industry. According to certain market analysts, the message is clear — Bitcoin is currency, whereas the rest of the crypto sector is speculative.
Meanwhile, BTC was valued at $62,000, marking a 5% decrease on the weekly charts. Conversely, ETH was priced at $2,400, indicating an 8.5% decline over the same period.