BlackRock, the world's largest asset management company and publisher of the Bitcoin spot ETF IBIT, recently (10/16) purchased Bitcoin worth US$391.8 million, and its current Bitcoin reserves have exceeded US$25 billion. This increase in holdings shows that BlackRock’s confidence in the long-term value of Bitcoin continues to increase. Although Bitcoin is highly volatile, BlackRock’s continued investment may encourage other institutional investors who are waiting to enter the market one after another, further promoting Bitcoin. global popularity.
BlackRock: Bitcoin returns higher
According to previous reports by (CryptoCity), at the Digital Asset Conference held recently, BlackRock research showed that allocating Bitcoin in an investment portfolio in different time periods can often result in higher returns than traditional investment portfolios, regardless of Bitcoin. The allocation may increase portfolio volatility, but the higher return potential makes the risk almost negligible. In addition, BlackRock also analyzed the importance of long-term holding of Bitcoin. In the past four years, the lowest return rate of Bitcoin was 137%; even if it was only held for three years, Bitcoin still had a positive rate of return, showing that compared with For short-term operations, Bitcoin is more suitable for long-term holding.
The impact of the US election
As the U.S. presidential election approaches, Donald Trump and Kamala Harris have expressed support for the cryptocurrency industry. In last month’s fundraising event, Harris promised to create jobs in innovative technologies such as AI and digital assets, while protecting consumers and investors; Trump, in addition to his change of stance on cryptocurrencies in the past year, also announced NFT , and recently promoted the deployment of the DeFi project World Liberty Financial.
Bitcoin gradually penetrates traditional finance
The friendliness of this series of institutions and policies also seems to indicate that the concept of Bitcoin as "digital gold" will become more popular. With the strong promotion of asset management giants such as BlackRock, Franklin or Fidelity Investments, traditional investors in the market will also pay more attention to the weight of Bitcoin in their investment portfolios; especially under the premise that the global economic environment is still unclear , Bitcoin’s status as a safe-haven asset will also become more solid.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
