BlackRock, the largest asset manager in the world and publisher of the most successful Bitcoin ETF, has now added it to a model portfolio that manages 150 billion dollars in assets. Portfolios from BlackRock in which there is a place for “alternative assets,” can soon invest 1-2% of their capital in Bitcoin via the ETF of the asset manager.
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Why does BlackRock opt for an allocation of 1-2%?
The reason why BlackRock opts for an allocation of 1-2% is simple. Bitcoin is a volatile asset, as we saw again in recent days. The Bitcoin course thundered down and reached a provisional bottom of below 80,000 dollars. Bitcoin is now acting at $ 85,000.
Asset managers such as BlackRock are usually not in the competition to achieve the highest possible return in as little time as possible. BlackRock is a party that opts for a balance between risk and return.
As a result, the efficiency potential of lower, but investors also do not run huge risks. With an investment of 1-2% in Bitcoin, the losses are limited, while investors in the funds still receive exposure to the upward potential of the digital currency.
At the moment the BlackRock model portfolios manage around 5 trillion dollars in capital, and in 2028 they expect to have 10 trillion dollars on that front. In that respect, this can turn out well for Bitcoin.
This is very good news for Bitcoin
This development is fantastic news for Bitcoin and also comes at a good time in terms of timing. Bitcoin has a difficult time and many investors wondered where the new capital should come from.
BlackRock now gives part of the answer. They seem to want to make Bitcoin slowly but surely a “normal asset” in the financial world. An asset where every asset manager would have to invest at least a small part of his portfolio, or at least seriously consider that.
You can also see this as a next important step in Bitcoin’s adoption by the traditional financial world. Certainly because BlackRock fulfills an exemplary role for many parties.
It is not without reason that BlackRock is the largest asset manager in the world, and CEO Larry Fink is often seen as the most powerful man within the traditional financial world. In that respect, therefore, finally very positive news for Bitcoin.
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Source: https://newsbit.nl/grootste-vermogensbeheerder-ter-wereld-gaat-1-2-in-bitcoin-investeren/
