Download Onramp’s full report here

In its recently released report, BlackRock presents a compelling case for Bitcoin as a distinctive and highly beneficial asset class that stands apart from traditional financial instruments. BlackRock’s acknowledgment of Bitcoin’s unique properties is well-founded, but investors must also be aware of the limitations and risks posed by centralized custody models, such as those found in Bitcoin ETFs.

BlackRock correctly notes that Bitcoin doesn’t fit neatly into the traditional categories of “risk-on” or “risk-off” assets. Over longer periods, Bitcoin behaves more like a “risk-off” asset due to its uncorrelated performance and fundamental nature as a decentralized monetary system without a central issuer or inherent counterparty risk. However, BlackRock fails to consider the risks associated with custody: centralizing Bitcoin with single custodians contradicts the asset’s core principles of decentralization.

At Onramp, we believe that the future of Bitcoin lies in solutions that embrace decentralization, security, and transparency—principles embodied in our multi-institution custody model. By choosing a custody solution that aligns with these values, investors can ensure that their Bitcoin is secure for the long haul.

Bitcoin can indeed act as a unique diversifier within a traditional portfolio, but the inherent benefits of its “risk-off” nature can only be fully realized if investors are willing to critically address custodial risks.

Download Onramp’s full report here