Bitcoin Positioned as Low-Beta Asset Amid U.S. Trade Tensions
Bitcoin (BTC) maintained stability amid a shift from U.S. assets due to trade tensions, reinforcing its perception as a safe haven.
- BlackRock's Head of Digital Assets, Robert Mitchinik, suggested BTC may evolve into a permanent low-beta asset.
- Investors sold off U.S. assets, including the Nasdaq and S&P 500, while BTC remained less volatile than the S&P 500 over a week.
- This decoupling has attracted renewed capital inflows into U.S.-listed spot ETFs, with at least $3 billion invested in the last ten trading days; BlackRock's IBIT saw the highest inflows.
- Mitchinik noted that BTC is being transferred from less stable hands to long-term holders.
- Jan van Eck, CEO of VanEck, expressed a desire for BTC to return to its pre-2020 status as an uncorrelated asset.
- The institutionalization of BTC post-Covid has increased correlations with traditional finance assets, reducing its appeal as a portfolio diversifier.