BlackRock Incorporates Bitcoin into $150 Billion Model-Portfolio Offerings
BlackRock has recently incorporated Bitcoin (BTC) into its $150 billion model-portfolio offerings through its iShares Bitcoin Trust ETF (IBIT) exchange-traded fund (ETF), as reported by Bloomberg News on Feb. 28.
Key Points:
- BlackRock assigns 1% to 2% of its target allocation portfolios to IBIT.
- IBIT registered over $36 billion in net flows as of Dec. 17.
- BlackRock defines a 1% to 2% allocation for Bitcoin as a “reasonable range” due to its inherent volatility.
Expert Opinion:
Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF model portfolio suite, believes: “We believe Bitcoin has long-term investment merit and can potentially provide unique and additive sources of diversification to portfolios.”
Stance Shift Amid Market Turmoil
The decision to incorporate Bitcoin into its model portfolio comes at a time when IBIT has experienced $930 million in outflows in the past four days. Despite recent challenges, IBIT still holds over $48 billion in assets and displays nearly $40 billion in net flows.
Additional Insights:
- BlackRock doubled its Bitcoin exposure in its Global Allocation Fund last year, reporting 430,770 shares of IBIT in its third-quarter 13F Form.
- Adding Bitcoin to its model portfolio could potentially boost market sentiment amid falling prices.
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