How BlackRock, the World's Largest Asset Manager, Took Crypto Mainstream - Ep. 735

Unchained

Laura Shin

News, Tech News, Business News

4.6 • 1.3K Ratings

🗓️ 15 November 2024

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

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Summary

BlackRock’s entry into crypto through its bitcoin ETF (and later on the spot ether ETF) has rewritten the record books, driving massive inflows and reshaping the narrative for institutional crypto adoption. Robbie Mitchnick, head of digital assets at BlackRock, unpacks the story behind this monumental shift. He shares the journey from skepticism to success, how BlackRock’s ETF has changed the market, and the surprises even he didn’t expect. Plus, he explains why he believes people mistake bitcoin for a risk-on asset, what the investment case is for Ethereum, and what’s next for crypto in 2025. Show highlights: 01:31 What and who is driving this massive amount of activity in bitcoin trading 05:05 Why Robbie offers some caution about the future of digital asset regulation 08:35 What about crypto captivated Robbie 13:32Whether Robbie was the one who “orange pilled” BlackRock CEO Larry Fink 14:37 Why Robbie thinks that bitcoin is not a risk-on asset 18:08 The backstory of how BlackRock ended up filing for a spot bitcoin ETF 20:15 How inflows into ETFs surprised Robbie, even considering fairly optimistic projections 24:14 Why BlackRock’s clients always ask about bitcoin’s correlation with other assets 27:22 Robbie’s take on the critique that BlackRock could centralize a decentralized ecosystem 29:34 What his thesis is on stablecoins, payments, and tokenization 31:25 The reasons why Ethereum ETFs have not been as successful as bitcoin 34:14 How Robbie pitches the ether ETF to clients 35:26 Why BUIDL is built on Ethereum, a public blockchain, rather than on a private one 36:48 Why DeFi’s potential is “immense,” according to Robbie 41:56 How bitcoin ETF options will impact the behavior of investors 43:57 What features BlackRock would love to see under a new SEC regime 45:32 What it’ll take for regulators to approve staking in ether ETFs 46:33 Why Robbie is not sure which crypto ETFs might come next 48:16 Whether BlackRock will develop proof of reserves for its ETFs 52:21 Robbie’s outlook for the markets in 2025 Visit our website for breaking news, analysis, op-eds, articles to learn about crypto, and much more: unchainedcrypto.com Thank you to our sponsors! Polkadot Mantle’s FBTC Guest: Robbie Mitchnick, Head of Digital Assets for BlackRock Links Previous coverage of Unchained on Bitcoin ETFs: Why Bitcoin ETF Options Could Unlock Massive Amounts of Capital for Crypto How, in 7 Weeks, Bitcoin ETFs Reached Inflows That Took Gold ETFs 3 Years Bitcoin’s Price Is Way Up. And $48 Trillion in Wealth Just Got Access How Small Bitcoin ETF Issuers Will Compete With the Likes of BlackRock Unchained: BlackRock’s Spot Bitcoin ETF Eclipses Firm’s Gold ETF in Net Assets CNBC: BlackRock CEO Larry Fink: I believe bitcoin is a legit financial instrument CoinDesk: BlackRock Sees Sovereign Wealth Funds, Pensions Coming to Bitcoin ETFs Forbes: A Trump U.S. Strategic Bitcoin Reserve ‘Game-Changer’ Is Suddenly Hurtling Toward The Bitcoin Price Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Obviously, I had very high conviction in what this could be and how big an unlock it would be to be able to have a mainstream accessible, turnkey, convenient Bitcoin exposure vehicle.
0:12.5	But this has certainly exceeded even my fairly optimistic expectations.
0:18.0	And as a firm, we had pretty optimistic projections, but, you know,
0:22.9	I don't think anyone's ever going to put down as their base or even maybe their bullcase that
0:28.0	year one is going to rewrite the record book on inflows into the ETF category.
0:37.4	Hi, everyone. Welcome to Unchained. You're a no hype resource for all things Crypto. I'm your host, Laura Shin, author of The Cryptopians. I started covering crypto nine years ago and as the senior editor of Forbes was the first mainstream meter reporter to cover cryptocurrency full-time. This is the November 15th, 2024 episode of Unchained.
0:55.7	Pocodod is the original and leading Layer Zero blockchain with over 2,000-plus developers,
1:01.0	and the Pocodot 2.0 upgrade will be a massive accelerator for the ecosystem.
1:05.6	Join the community at Pocodot.network slash ecosystem slash community.
1:11.5	FBT is the fastest-growing Om OmniChane BTC asset this summer.
1:15.4	Join FBTC Points-inspired campaign where you can hold FBTC to earn sparks, lucrative yields, and token drops, all on your Bitcoin.
1:24.0	Today's guest is Robbie Michnik, head of digital assets for BlackRock.
1:27.7	Welcome, Robbie. Hey, Laura. Thanks assets for Black Rock. Welcome, Robbie.
1:29.0	Hey, Laura. Thanks for having me on.
1:30.8	Yeah, excited to chat with you.
1:32.2	This is a very exciting time for the industry.
1:34.7	Just to let people know, we're recording Tuesday afternoon.
1:37.9	So if any relevant news breaks Wednesday or Thursday, it will not be included in this show.
1:42.7	But there's a lot to talk about.
1:44.6	The election has been huge for Ibit and for the whole crypto market generally.
1:49.0	Ibit saw record volumes and inflows around the election. And on Monday, the Bitcoin
1:53.0	ETFs had their sixth largest day and trading volume ever, $7.2 billion worth.
	...

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