$BTC BlackRock Recommends 1-2% Bitcoin Allocation in Multi-Asset Portfolios
The world’s biggest asset manager with $11.5tn in assets under management, BlackRock, has for the first time called on investors to purchase bitcoin. The firm’s latest report said that investors should allocate 1-2% of their diverse portfolios to BTC. This comes when spot bitcoin exchange-traded funds (ETFs) have actually come into existence. They currently have more than $113 Billion in AUM.
BlackRock’s report highlights that a 1-2% Bitcoin allocation offers a balanced approach to incorporating the digital asset into a diversified portfolio. The firm emphasized that exceeding this range could di
sproportionately increase portfolio risk. The guide links Bitcoin’s incorporation with BlackRock’s model of a 60/40 equity/bond breakdown.
The manager suggested that investors add to their equity in large-cap technology names such as Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. Most of them were provided as an addition to the consideration of Bitcoin as a portfolio play. These companies are known as the “Magnificent 7”.