BlackRock’s Global Head of Digital Assets, Robbie Mitchnick, stated that current Bitcoin price levels do not accurately reflect the rising demand from institutional investors.
Despite recent market volatility, Mitchnick noted that Bitcoin remains approximately 15% higher than its early November levels.
Mitchnick further stated Bitcoin’s core attributes—scarcity, decentralization, and independence from traditional monetary systems—as factors that position it as a potential hedge against economic downturns. He believed that a potential U.S. recession would be the trigger for Bitcoin’s next major price rally.
Increasing Institutional Interest Signals Bitcoin’s Next Big Move
Institutional engagement with Bitcoin has increased over the past year, followed by key developments in the exchange-traded fund (ETF) market, pension fund investments, and corporate accumulation.
The U.S. Securities and Exchange Commission (SEC) approved the trading of 11 spot Bitcoin ETFs in January 2024, offering a regulated channel for institutional investors to gain direct exposure to Bitcoin. BlackRock’s iShares Bitcoin Trust ETF (IBIT) particularly saw $1 billion in volume within a short time after listing.
Pension funds, traditionally conservative investors, have also started increasing their exposure to Bitcoin. The State of Wisconsin Investment Board more than doubled its Bitcoin ETF holdings to 6 million shares in the fourth quarter of 2024, a sign of increased confidence in Bitcoin as an investable asset.
Corporate institutions have similarly continued to expand their Bitcoin positions. Strategy, one of the largest corporate holders of Bitcoin, reported holdings of approximately 499,226 BTC as of March 2025. The company has maintained an aggressive acquisition strategy, a show of its long-term commitment to Bitcoin as a core part of its balance sheet strategy.
Bitcoin’s Volatility Continues Despite Record ETF Outflows
Despite growing institutional interest, Bitcoin’s price has faced high volatility. In February 2025, Bitcoin fell by 17.2%, driven in part by record outflows from Bitcoin-based ETFs. Approximately $3.3 billion was withdrawn from these products during the month, a show of the influence of institutional trading patterns on market performance.
While Bitcoin’s price has experienced short-term setbacks, BlackRock remains optimistic that increasing institutional adoption will drive future price growth. Mitchnick’s remarks align with a global industry view that institutional inflows could spark higher valuations over the long term.