BlackRock CIO says Bitcoin will go 'ultimately higher' despite 2 rivals

BlackRock's top fixed-income executive sees Bitcoin rising long term but warns it faces competition from tech stocks and yield-bearing products as rates stay elevated.

Bitcoin will go "ultimately higher" but faces competition from tech stocks and yield-bearing products, BlackRock Inc. CIO Rick Rieder said.

"I think Bitcoin ultimately goes higher, but it's competing with a lot of other things right now — tech stocks that have produced incredible returns, and products that offer yield in a higher-rate environment," Rieder, chief investment officer of global fixed income at the world's largest asset manager, said.

Bitcoin traded at $64,032 as of 14:30 UTC on June 18, down 1.1% on the day and 26% year to date, according to CoinGecko. The token remains roughly 50% below its record high of about $109,000 from October 2025. The broader CoinDesk 20 Index has lost 34% this year.

The competition Rieder identified is intensifying as the Federal Reserve indicates rates will stay higher for longer. The U.S. 10-year and 2-year Treasury yield spread has narrowed to 28 basis points, the tightest since April, reflecting expectations that the central bank will hold rates elevated through 2028, according to Fed dot plot projections released this week. That dynamic makes fixed-income assets more attractive relative to non-yielding assets like Bitcoin.

Yield Competition Heats Up as Fed Holds Firm

BlackRock's own BITA product — a yield-bearing Bitcoin investment vehicle — exemplifies the shift. The product offers investors exposure to Bitcoin with an income component, directly competing with plain BTC holdings in a world where the risk-free rate remains above 4%. The combined market value of stablecoins, which offer dollar-denominated yield, recently hit a record $322 billion, according to DefiLlama data. Citi projects that figure could reach $4 trillion by 2030.

Institutional Interest Persists Despite Price Slump

Despite the 26% year-to-date decline, engagement from registered investment advisors remains strong, Bitwise CIO Matt Hougan said. "Interest is as high as it's ever been," Hougan said, adding that he sees Bitcoin reaching $1 million over the next decade. However, he cautioned that the next bull market "will be slower and less volatile" as Wall Street shifts attention to real-world applications like tokenization and artificial intelligence.

"In bear markets, with doubts swirling, it's easier for them to reach for something tangible," Hougan said. "Stablecoins and tokenization are more tangible and 'real-world' to most people than bitcoin."

Rieder's long-term bullish view aligns with a growing consensus among institutional investors that Bitcoin has a place in diversified portfolios, even as near-term headwinds from monetary policy and competing asset classes persist. The question for investors is whether the yield offered by bonds, stablecoins and BlackRock's own BITA product will continue to draw capital away from Bitcoin until the Fed pivots.

This article is for informational purposes only and does not constitute investment advice.