Partnerships and Progress in Crypto Investments

This chapter examines the collaboration between investment management systems and the stablecoin market, spotlighting the integration of Coinbase Prime into the Aladdin system for enhanced Bitcoin transactions. It also explores the surge in ETF popularity, client demand for crypto assets, and the critical need for informed discussions about risk and education in the evolving cryptocurrency landscape.

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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