BlackRock's Exec Says CLARITY Act Is 'Less Critical' for Bitcoin Other Cryptos

BlackRock’s ) head of digital assets Robert Mitchnick told CNBC Wednesday that the CLARITY Act is “less critical” for Bitcoin than for the rest of crypto.What Mitchnick Said About Bitcoin and RegulationBitcoin has already achieved a level of regulatory acceptance that most other digital assets have not, acorrding to Mitchnik.The CLARITY Act matters more for assets touching DeFi and other complex crypto categories, where the regulatory picture remains genuinely unsettled.For Bitcoin specifically, he argued that institutional investors are not banking on further legislation as part of their base case and are treating any regulatory progress as potential upside rather than a requirement.Why He Thinks Bitcoin Is Acting Like Gold Right NowMitchnick argued that Bitcoin’s rally while equities struggled last week reflects its distinct risk and return drivers rather than the old risk-on behavior that has confused markets at various points.Investors concerned about global debt and deficits are increasingly drawn to Bitcoin, with younger demographics favoring it over gold for the same store-of-value role their parents’ generation used gold to fill.“In the long run, that’s the narrative to bet on around Bitcoin,” he said.He also noted that Bitcoin’s rally amid equity weakness cannot be explained as an equity-beta move, pointing to its own flows and the debasement trade as the real engine behind the move.What BlackRock Is Seeing in ETF and Product DemandMitchnick further told CNBC that IBIT ) continues to resonate across institutional investors, financial advisors, and direct investors.BlackRock extended its crypto product lineup to Ethereum (CRYPTO: ETH) with both a non-staking and a staking product, and added a Bitcoin premium income product this summer that lets investors retain most of Bitcoin’s upside while generating a significant annual yield and moderating volatility.On stablecoins, Mitchnick said BlackRock is excited about growth beyond crypto trading into cross-border payments and capital markets, particularly with the Genius Act implementation approaching.What the Bitcoin ETF Numbers ShowBitcoin spot ETFs pulled in $232.1 million Wednesday, extending the inflow streak to eight straight trading days and bringing the total over that run to $2.8 billion, according to SoSoValue.IBIT (NASDAQ:IBIT) led Wednesday with $200.76 million. Cumulative net inflows now stand at $54.6 billion with total net assets reaching $98.6 billion as Bitcoin trades near $78,500.Image: Shutterstock