BlackRock anticipates that AI will propel the upcoming bullish cycle for cryptocurrencies as interest in altcoins diminishes.

Robbie Mitchnick from the asset management giant indicated that clients are concentrating on bitcoin, ether, and a select few other tokens, rather than seeking broad exposure. Instead, they perceive potential for cryptocurrency within artificial intelligence.

(Justin Sullivan/Getty Images)

Key points:

• Robbie Mitchnick, BlackRock’s head of digital assets, noted that institutional investors are increasingly focusing on bitcoin and ether, viewing most other tokens as ephemeral and largely “nonsense.”
• Mitchnick suggested that artificial intelligence holds more long-term significance than the emergence of new cryptocurrencies, with crypto functioning as “computer-native money” that effectively complements AI’s “computer-native data and intelligence.”
• He positioned crypto less as a speculative investment and more as a foundational element for the AI economy, highlighting the shift of bitcoin miners toward AI-related computing and suggesting bitcoin may provide diversification amidst AI-driven changes.

Robbie Mitchnick from BlackRock’s digital assets division indicated a transformation in how major investors perceive crypto, emphasizing artificial intelligence (AI) as a more substantial influence than the increase of new tokens.

Discussing client activity, Mitchnick depicted a market that has shifted away from broad engagement with smaller assets. He noted that the turnover among leading tokens has been “quite intense,” with only bitcoin BTC“$70,073.80 and later ether (ETH) sustaining stable positions. Many newer tokens, he mentioned, struggle to maintain long-term significance.

This trend has influenced investor interest. “The majority of that is nonsense,” Mitchnick stated during the Digital Asset Summit in New York on Tuesday, referring to the extensive array of tokens available. Consequently, clients are now concentrating on a limited selection of assets rather than diversifying across multiple portfolios. Bitcoin and Ethereum dominate holdings, with minimal interest in other options.

In this context, Mitchnick highlighted AI as a more critical element influencing the future role of crypto. He emphasized that AI represents a broader theme than digital assets, yet noted that the two intersect in ways that could be significant.

“AI agents are very unlikely to use, you know, Fedwire and SWIFT,” he remarked. “What is crypto? Crypto is computer-native money… AI is computer-native data and intelligence. And so there’s a natural symbiosis there.”

This perspective positions crypto less as a speculative asset class and more as essential infrastructure. An increasing number of bitcoin miners are redirecting resources toward AI workloads, attracted by more stable revenue and growing demand for computing capacity. Various publicly traded miners, including Hut 8 (HUT), Core Scientific (CORZ), and Iren (IREN), are either repurposing their data centers or entering hosting agreements related to AI and high-performance computing. Other miners have also indicated similar intentions, even while mining remains their primary focus.

Mitchnick also associated AI-driven transformations with bitcoin’s attractiveness. As new technologies alter industries and generate uncertainty, he proposed that bitcoin could function as a stabilizing asset. It may serve as a diversifier during times of rapid change.

“There are intersection points that are relevant… there’s clearly an advantage and an opportunity to play a role in the AI economy,” he concluded.