BlackRock, the world’s largest asset manager, said it is “reasonable” for investors to allocate 1-2% of their portfolio if they want to hold Bitcoin (BTC). This ratio provides exposure to Bitcoin without significantly increasing portfolio risk.

The report said that a 1-2% BTC allocation carries similar risk to an allocation to the “magnificent 7” group, which is generally comprised of mega-cap tech stocks, in a portfolio that is 60% equities and 40% fixed income assets.

BlackRock said that Bitcoin could become less risky in the long term, but that it may not be a structural catalyst for major price increases.

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