news 
BlackRock Recommends Bitcoin Allocation: Here’s How Much Should Be in Your Portfolio
In a recent report, BlackRock, the world’s largest asset manager, advised investors to maintain a conservative approach when adding Bitcoin to their portfolios. Despite managing a staggering $53.8 billion in assets through its Bitcoin ETF, the firm suggests limiting exposure to the cryptocurrency to just 1-2% of a portfolio’s total value.
According to the report, BlackRock likened Bitcoin investments to holding top tech stocks: a potentially lucrative yet inherently risky move. The authors emphasized that while Bitcoin’s volatility and lack of cash flows contribute to its risk profile, it may still offer significant diversification benefits.
The report noted that while Bitcoin adoption could potentially make the asset less risky in the future, this may also diminish its potential for exponential price increases. BlackRock views the cryptocurrency’s growth primarily as driven by adoption rather than intrinsic financial returns.
BlackRock sees Bitcoin as a unique asset class, appealing to those seeking diversification and a hedge against potential financial crises, such as sovereign debt issues.
Source: bravenewcoin.com
