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BlackRock Reveals Its Recommended Bitcoin Exposure
As reported by U.Today, global investment giant BlackRock has issued a new paper in which it highlights the potential for institutional investors to increase their exposure to bitcoin. According to the report, bitcoin’s ability to attract more mainstream attention is likely to naturally lead to higher demand and potentially even higher prices.
Currently, bitcoin is trading at $101,459 after reaching an intraday peak of $102,528 earlier this Thursday. It is now just 1.9% away from surpassing its current record high of $103,679.
BlackRock’s prediction that Bitcoin could become less risky as it achieves broader institutional adoption is also significant. This could potentially mean that while the cryptocurrency may not be as volatile in the future, its returns would likely also be smaller. As reported by U.Today, bitcoin is currently underperforming its previous bullish cycle, with its volatility dampened due to wider institutional adoption.
BlackRock’s role in this broader Bitcoin adoption cannot be overstated. Its successful Bitcoin ETF has played a critical part in drawing more mainstream attention and participation into the market. The IBIT fund, which BlackRock sponsors, is now approaching $54 billion in total assets under management.
The potential for bitcoin to become less risky as institutional investors become more involved could have significant implications for both individual and institutional investors alike.
Source: u.today
