12.12.2024
Oleg Tkachenko
Author and expert at Traders Union
12.12.2024

BlackRock advises to invest 2% of the portfolio in Bitcoin

BlackRock advises to invest 2% of the portfolio in Bitcoin Blackrock advises allocating 1%-2% of portfolios to Bitcoin in landmark endorsement

BlackRock, the world’s largest asset manager with $11.5 trillion in assets under management, has recommended allocating 1% to 2% of portfolios to Bitcoin (BTC) for some investors. 

This suggestion was part of a newly released report on including Bitcoin in a multi-asset portfolio, marking a significant endorsement from the financial titan, reports The Block.

BlackRock’s Bitcoin ETF and Market Context

BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF, has surpassed $50 billion in assets under management. The company’s recommendation comes as Bitcoin recently exceeded $100,000 for the first time, driven by heightened interest following Donald Trump’s pro-crypto election victory.

Bitcoin’s unprecedented legitimacy is bolstered by regulatory advancements, including Bitcoin ETFs trading since January. Trump’s presidency, seen as favorable for the crypto sector, has further fueled optimism in the digital asset market.

Why 1% to 2% Allocation?

BlackRock called the suggested 1%-2% allocation range a “reasonable exposure” to Bitcoin in diversified portfolios. The recommendation reflects Bitcoin’s evolving role as an institutional-grade asset, offering portfolio diversification benefits. The asset manager’s report reinforces Bitcoin’s growing acceptance among institutional investors and its potential role in modern portfolio strategies.

Broader Implications

BlackRock’s guidance highlights a shift in traditional finance’s approach to crypto assets, signaling increased confidence in Bitcoin’s stability and growth potential. As more institutional players embrace Bitcoin, this could pave the way for broader adoption and integration into mainstream financial portfolios.

Recentrly we wrote, that ​European cryptocurrency exchanges are preparing to remove stablecoins that fail to comply with local regulations as the enforcement deadline for the EU's Markets in Crypto-Assets Regulation (MiCA) approaches.

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