Key Takeaways
- BlackRock advises allocating 1-2% of traditional portfolios to Bitcoin, reflecting growing acceptance of the cryptocurrency despite risks.
- US spot Bitcoin ETFs, including BlackRock’s IBIT, drive record inflows, surpassing $113B in managed assets.
- Bitcoin ETFs now hold over 1.1M BTC, outpacing Satoshi Nakamoto’s estimated holdings, highlighting institutional adoption.
BlackRock Advocates Bitcoin Allocation in Traditional Portfolios
BlackRock recommends allocating 1-2% of traditional 60/40 portfolios to Bitcoin, citing its growth potential despite risks.
This guidance marks a departure from mainstream investors’ prior exclusion of cryptocurrencies in diversified portfolios.
The report suggests a "risk budgeting" approach, emphasizing the importance of weighing Bitcoin's volatility against its potential rewards.
Bitcoin ETFs Drive Record Inflows and Institutional Adoption
US spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), have driven inflows exceeding $113B in assets under management.
Bitcoin ETFs now hold over 1.1M BTC, surpassing Satoshi Nakamoto's estimated holdings and highlighting institutional interest.
BlackRock's IBIT leads the inflow race, significantly outperforming European counterparts and other competitors in the US market.
Weekly inflows have remained robust, with over $2.7B invested in early December alone.
Key Factors Behind Bitcoin’s Growing Popularity
President-elect Donald Trump’s pro-Bitcoin and crypto stance and his nominations have boosted confidence in Bitcoin's regulatory future.
Bitcoin’s $100,000 milestone this year acted as a psychological trigger for increased institutional investment.
The decoupling of Bitcoin from traditional assets like tech stocks is attributed to geopolitical tensions and declining trust in banks.
