BlackRock Recommends 1-2% Bitcoin Allocation in Investor Portfolios

BlackRock, the world's largest asset manager with $14 trillion under management, now recommends a 1-2% Bitcoin allocation in diversified portfolios, saying it can boost returns without destabilizing risk. The firm added its IBIT ETF to model portfolios.

• BlackRock's lead portfolio manager Michael Gates called Bitcoin a 'complementary diversifier' in multi-asset portfolios.
• A 1-2% Bitcoin allocation carries risk comparable to a single large-cap tech stock, the firm says.
• BlackRock added its iShares Bitcoin Trust ETF (IBIT) to model portfolios for the first time; IBIT holds over 765,000 BTC with $49 billion in AUM.
• The firm also launched a Bitcoin covered-call ETF (BITA) for income-focused investors.
• BlackRock previously estimated that 1% Asian advisor allocation to crypto could drive nearly $2 trillion in new capital.

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