Coin Stories | Robbie Mitchnick: Inside BlackRock's Bitcoin Vision, Global Store-of-Value Race & How BlackRock Builds BTC into Portfolios

Host: Natalie Brunell
Guest: Robby (Robbie) Mitchnick, Global Head of Digital Assets, BlackRock
Date: November 20, 2025

Episode Overview

This episode of Coin Stories features an in-depth interview with Robby Mitchnick, Global Head of Digital Assets at BlackRock. The conversation dives into BlackRock’s evolving stance on Bitcoin, the unprecedented success of the iShares Bitcoin ETF (IBIT), Bitcoin’s growing role as a global store of value, portfolio allocation strategies, and how institutional adoption is shifting the landscape. Mitchnick shares insights on regulatory shifts, institutional onboarding, misconceptions about Bitcoin, and the underlying optimism that digital assets offer against current economic uncertainties.

Key Discussion Points & Insights

1. BlackRock’s Journey with Bitcoin

• Larry Fink's Transformation

  • Mitchnick attributes much of BlackRock CEO Larry Fink’s pro-Bitcoin shift to Fink’s willingness to “do the work” and keep an open mind, noting that “it's an admirable trait” to change one's mind as new facts emerge.

    “Larry deserves a lot of credit.” (00:26, 04:17)

• Path to Institutional Conviction

  • BlackRock’s comfort with Bitcoin grew alongside maturing market infrastructure, increased client demand, and a regulatory/political shift toward embracing crypto as a permanent asset class.

    “The space became more institutionalized. You had infrastructure that … was institutional grade.” (28:17)

2. The Success of BlackRock’s Spot Bitcoin ETF (IBIT)

• Historic Adoption & Inflows

  • The IBIT launched nearly two years ago with record-setting inflows, outpacing even gold-based ETFs.

    “Record setting ... testament to just how much pent up demand there was to be able to hold Bitcoin in a turnkey, convenient, accessible, low cost way.” (01:05)

• Investor Composition Over Time

  • Initially, 80% of IBIT inflows were retail investors (Q1 2024). The latest split (late 2025) is roughly 50% retail, with the remaining 50% split between wealth advisors and institutions (including a sizable presence from hedge funds, sovereign wealth funds, and pension funds).

    “Today it's around 50/50...half is wealth advisory...and the other half is institutional...” (01:57)

3. Bitcoin’s Role in Portfolios & Institutional Strategy

• Diversification and Risk Management

  • BlackRock advocates a modest allocation (typically 1-2%) to Bitcoin as a diversifier and hedge against currency debasement and tail risks.

    “There’s an argument that one can make that this is a valuable thing to have some modest exposure to as a unique source for diversification, as a potential hedge.” (03:00)

  • Mitchnick outlines the parallel with top tech stocks (“MAG7”) and how target Bitcoin allocations are calculated for optimal portfolio volatility.

• Correlation Discussion: Bitcoin as a Non-Traditional Asset

  • Many in TradFi conflate Bitcoin with risk assets, but Mitchnick stresses that it's misleading to lump “risk” into a single bucket. The true portfolio value comes when Bitcoin maintains a low correlation with equities.

    “Instead we see this bundling of a singular concept of risk... makes no fundamental sense, frankly.” (08:25)
    “If the correlation is close to zero...it becomes, is it risky not to own any?” (24:26)

4. Store-of-Value Race: Bitcoin vs. Gold

• Parity and Market Cap Potential

  • While not offering a specific price target, Mitchnick details a framework for considering whether Bitcoin could reach or exceed gold’s $26 trillion market cap.

    “Those are the only two options. I like that framing.” (14:24)

  • Younger generations and corporates are more likely to choose Bitcoin over gold for non-sovereign asset exposure.

• Cultural and Global Context

  • Bitcoin adoption outside the US (notably Latin America) is far higher, owing to less monetary stability. The US is only recently seeing a shift in this thinking.

    “If you go to other parts of the world...rates of bitcoin adoption are far higher.” (05:45)

5. Addressing Bitcoin Misconceptions and Pushback

• Volatility and Media Narratives

  • New adopters are often shaken by natural cycles, mistaking routine drawdowns for existential threats.

    “For someone who's been through all the cycles ... it's almost a little bit amusing.” (32:02)

  • Traditional finance's skepticism is often rooted in misunderstandings about what drives Bitcoin’s price, with superficial analysis citing non-related economic indicators.

• On Leverage and Market Health

  • Mitchnick cautions against cheerleading excessive leverage in crypto markets, referencing the October 2025 flash crash and the long-term dangers of such episodes.

    “I don't understand why that's healthy for the market.” (36:41)

6. Institutionalization vs. Cypherpunk Roots

• Balancing Ideals and Growth
  • Responding to concerns that institutional money undermines Bitcoin’s original ethos, Mitchnick argues that wider adoption and new participants ultimately benefit the network and idea of Bitcoin.

    “There's lots of people ... who can be useful to that cause. ... I think that's a cause for good for bitcoin, frankly.” (29:24)

7. Technical Adoption and Use Cases

• Store-of-Value vs. Payments

  • Currently, Bitcoin’s strongest product-market fit is as a digital store-of-value, not as a global payment network (which is a more speculative, longer-term proposition).

• Stablecoins and Tokenization

  • Mitchnick acknowledges stablecoins’ real-world payment utility and sees limited near-term competition between Bitcoin and proof-of-stake blockchains for tokenization use cases.

    “Bitcoin is serving ... as a digital gold monetary instrument. … it’s always going to be, I think, at a little bit of a disadvantage for ... tokenization. And I think that should be completely okay.” (30:35)

8. Hope and the Broader Societal Role of Bitcoin

• Hope as an Economic Force
  • Mitchnick echoes Larry Fink’s observations: for the billions under authoritarian regimes or hyperinflation, Bitcoin can represent economic hope and freedom.

    “2 billion people around the world live in hyperinflation or perennially unstable currency regimes. ... to those people, the value proposition of bitcoin and what it brings is incredibly powerful.” (34:42)

Notable Quotes & Memorable Moments

• “Larry deserves a lot of credit. … It’s an admirable trait [to change your mind].” – Robby Mitchnick (00:26, 26:18)
• “Record setting...testament to just how much pent up demand there was to be able to hold Bitcoin in a turnkey, convenient, accessible, low cost way.” – Robby (01:05)
• “If the correlation is close to zero ... it becomes, is it risky not to own any?” – Robby (24:26)
• “Bitcoin has registered in the arena as a real competitor in that space...an incredible achievement.” – Robby (05:45)
• “We can run through ... how do you expect [different segments] to be as holders of bitcoin or gold? ... And you can start to build to something that looks like a reasonable, fundamental forecast.” (14:34)
• “It's almost a little bit amusing...he's seen Bitcoin go down 85% or almost 80% three different times. ... once you've been through it, you know the nature of the cycles and the resilience that this has.” (32:02)
• “We generally don't recommend clients try to market time. Bitcoin generally, if you've held it for three plus years, it's been quite, quite good historically.” (37:17)
• “There's lots of people ... who can be useful to that cause. ... I think that's a cause for good for bitcoin, frankly.” – Robby (29:24)
• “2 billion people around the world live in hyperinflation ... to those people, ... bitcoin...is incredibly powerful.” – Robby (34:42)

Timestamps for Key Segments

• 00:00–02:50 – BlackRock’s journey: Larry Fink’s reversal, inception and explosive growth of IBIT
• 02:50–05:45 – Portfolio construction: institutional adoption, risk/return and diversification
• 05:45–08:25 – Understanding Bitcoin’s use-case outside the US; fiscal debasement and adoption patterns
• 08:25–12:54 – Misconceptions in traditional finance; risk-on/risk-off narratives and correlation debates
• 13:26–16:16 – Store-of-value race: gold vs. Bitcoin market cap, generational shifts
• 16:16–18:09 – Retail sentiment, cycles, and whether Bitcoin competes with other asset classes
• 18:09–20:12 – Stablecoins, Bitcoin’s payments potential, and the role of innovation
• 22:04–24:23 – BlackRock’s portfolio allocation guidance, risk metrics and model portfolios
• 25:05–29:12 – Mitchnick’s Bitcoin journey; the institutionalization of crypto at BlackRock
• 29:12–31:59 – Cypherpunk origins vs. institutional growth; tokenization prospects
• 32:02–33:34 – Market psychology, cycles, misconceptions, resilience through volatility
• 34:07–35:38 – Bitcoin as economic hope in an era of eroding confidence and affordability
• 35:38–37:32 – Navigating volatility, leverage dangers, and market cycles

Conclusion

This episode provides a rare, granular look at BlackRock’s framework for viewing and integrating Bitcoin, both as a unique asset class and as part of global investors' portfolios. Mitchnick emphasizes the crucial importance of understanding Bitcoin’s non-traditional risk profile, the long game of adoption cycles, and its growing global relevance as a lifeline currency. For retail and institutions alike, a modest allocation to Bitcoin is increasingly seen as prudent—not as a wager, but as an essential hedge and diversifier in the modern era.

For further engagement, listeners are encouraged to follow new BlackRock digital asset research and guides, as well as keep up with Natalie’s Coin Stories newsletter.