Analysts at BlackRock, one of the largest asset managers in the world, recommend that investors allocate 1% to 2% of their traditional investment portfolios (e.g., a 60/40 stock-to-bond portfolio) to Bitcoin.
BlackRock’s Interest in Cryptocurrency
BlackRock is among 12 asset managers now offering spot Bitcoin Exchange-Traded Funds (ETFs). The company sees a promising future for cryptocurrency, emphasizing that market conditions are becoming favorable for Bitcoin and the crypto industry as a whole.
Now, BlackRock issued a report giving investors detailed advice on including Bitcoin in their portfolios. They suggest allocating 1% to 2%, particularly in the commonly used 60/40 portfolio model (60% stocks, 40% bonds).
And due to factors like Donald Trump’s perceived pro-crypto stance and his crypto-friendly nominees boosted confidence in Bitcoin, this optimism, along with market demand, helped push Bitcoin past $100,000, triggering large institutional investments. Bitcoin hitting an all-time high led to a surge in investments from institutions, particularly in ETFs. BlackRock’s Bitcoin ETF, along with others, attracted billions of dollars during this period.
Bloomberg’s Senior ETF Analyst Eric Balchunas shared BlackRock’s recommendation for a 1–2% Bitcoin allocation via a tweet, noting this is the first time the company specified an exact percentage for portfolio allocation.
“New report from BlackRock today that recommends 1–2% exposure to Bitcoin ETF, the first time they gave a specific number (they put this out because they had so much incoming on this q of how much?” Eric posted.
BlackRock also emphasized the risks of Bitcoin, mentioning its history of volatility, including an 80% price drop in the past. However, they also noted Bitcoin’s significant recovery, soaring 140% in 2024, and encouraged stakeholders to consider a risk-management approach.
Institutional Interest in Bitcoin and Ethereum
Major financial players like BlackRock, Fidelity, and Grayscale are increasingly launching ETFs for Bitcoin and Ethereum. Yesterday, BlackRock’s ETF surpassed $3 billion in inflows, becoming the largest fund for both Bitcoin and Ethereum ETFs.
Now, Investments from institutions enhance the credibility and liquidity of cryptocurrencies. This signals that traditional finance is starting to embrace blockchain technology, which is transforming how people store and exchange value.
What you should know
Crypto ETFs allow investors to benefit from Bitcoin or Ethereum price movements without directly owning the cryptocurrencies. Bitcoin ETFs were launched in January, followed by Ethereum ETFs in late July.
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