BlackRock Adds Bitcoin ETF to Recommended Portfolio for the First Time
BlackRock has added its own Bitcoin ETF, IBIT, to its recommended portfolio for global financial advisors.
According to Bloomberg, the world's largest asset management group BlackRock has added the IBIT Bitcoin ETF to its recommended portfolio for financial advisors, with a value of up to $150 billion by December 2024.
Specifically, BlackRock believes that investors can allocate 1-2% of their assets to IBIT as a way to diversify their portfolio.
Michael Gates, head of the ETF asset allocation model planning team for BlackRock, said the reason for the adjustment is because "there are many factors supporting the long-term growth prospects for Bitcoin prices".
BlackRock CEO Larry Fink has repeatedly compared Bitcoin to "digital gold" and called it a hedge against the risk of currency inflation, even predicting that this currency could reach the $700,000 mark.
Bloomberg ETF analyst James Seyffart commented that the news is a remarkable development because this is the first time BlackRock has added Bitcoin to a financial model of the group, opening the door for BTC and ETH to be included in large-scale models and followed by more investors, creating more momentum for these assets.
BlackRock's IBIT fund is currently the largest Bitcoin spot ETF in the US, owning more than $48 billion in Bitcoin after only 1 year of operation, accounting for half of the market share of this investment segment.
However, following the downward trend in February of the cryptocurrency market, which saw Bitcoin price corrected by 28% since the ATH peak in January to the price range of November 2024, IBIT also continuously recorded days with strong cash outflows, with the -418 million USD in the session on February 26 (US time) being the worst performance ever.
As of February 27, 11 US Bitcoin ETFs had 8 consecutive trading sessions recording outflows, with a total divestment value of more than 2.7 billion USD, of which the peak was on February 25 with a record cash outflow of 1.1 billion USD.
As reported, more and more major institutions around the world have revealed their holdings of Bitcoin ETFs, including the Abu Dhabi Investment Authority, the Wisconsin State Investment Board, Barclays, Goldman Sachs, etc.
Under the new administration of President Donald Trump, the US Securities and Exchange Commission (SEC) has made many moves to be more open to the cryptocurrency industry, including accepting ETF applications for many major altcoins such as Solana (SOL), XRP (XRP), Litecoin (LTC), as well as the ability to allow staking of crypto assets in ETFs
