{"id":376849,"date":"2025-02-28T23:43:04","date_gmt":"2025-02-28T18:13:04","guid":{"rendered":"https:\/\/dripp.zone\/news\/blackrock-adds-btc-etf-to-150b-model-portfolio-product-crypto-news\/"},"modified":"2025-02-28T23:44:55","modified_gmt":"2025-02-28T18:14:55","slug":"blackrock-adds-btc-etf-to-150b-model-portfolio-product-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/blackrock-adds-btc-etf-to-150b-model-portfolio-product-crypto-news\/","title":{"rendered":"BlackRock adds BTC ETF to $150B model portfolio product &#8211; Crypto News"},"content":{"rendered":"<div data-v-93e1f8b6=\"\">\n<p>BlackRock, a global investment firm with $11.5 trillion in assets under management, has added its Bitcoin exchange-traded fund (ETF) to its model portfolio product, <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-02-28\/blackrock-adds-ibit-to-model-portfolios-that-allow-alternatives\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">according<\/a> to a Feb. 28 report from Bloomberg. Portfolios that allow for alternative assets will be able to put a 1%\u20132% allocation into the firm\u2019s <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/blackrock-bitcoin-etf-50-market-share-etf-sell-off\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">iShares Bitcoin ETF Trust (IBIT)<\/a>, potentially creating new demand for the exchange-traded fund.<\/p>\n<p>The 1%\u20132% allocation is due to Bitcoin\u2019s (<a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/bitcoin-price\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">BTC<\/a>) volatility, which the firm <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/blackrock-1-2-percent-reasonable-bitcoin-portfolio-allocation\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">called a \u201creasonable range\u201d<\/a> in a paper authored by the BlackRock Investment Institute. Anything more would significantly increase the crypto\u2019s share of the total portfolio risk.<\/p>\n<p>BlackRock\u2019s $150-billion model portfolio product contains a range of investment portfolios that are sold to financial advisers who manage assets for their clients. The portfolios contain different balances of investments, with some targeted for growth, income generation or capital preservation.<\/p>\n<p><em><strong>Related: <\/strong><\/em><a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-crash-triggered-erosion-etf-cash-carry-trade-analyst\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/news\/bitcoin-crash-triggered-erosion-etf-cash-carry-trade-analyst\"><em><strong>Bitcoin crash triggered by erosion of ETF cash and carry trade \u2014 Analyst<\/strong><\/em><\/a><\/p>\n<p><iframe loading=\"lazy\" title=\"Bitcoin ETF: Wall Street\u2019s Path to Crypto | Cointelegraph Documentary\" width=\"740\" height=\"416\" src=\"https:\/\/www.youtube.com\/embed\/aU2nd5aDoXw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>The firm said in 2023 that it expects the model portfolio sector of money management to <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/www.wealthmanagement.com\/etfs\/blackrock-sees-model-portfolio-investing-growing-to-10t-by-2028\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">grow<\/a> to a $ 10-trillion business over the next five years, up from around $4.2 trillion at the time of the statement. Changes in model portfolio allocations can often have dramatic effects on money flow to certain investments.<\/p>\n<p>Other financial services firms have weighed in on the allocation of Bitcoin to the alternatives category of traditional portfolios like the 60\/40 portfolio. Fidelity <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/institutional.fidelity.com\/app\/literature\/view?itemCode=9911508&#038;renditionType=pdf\" rel=\"nofollow noopener\" target=\"_blank\" text=\"null\" title=\"https:\/\/institutional.fidelity.com\/app\/literature\/view?itemCode=9911508&#038;renditionType=pdf\">noted<\/a> in 2024 that Bitcoin could \u201coffer some return-enhancing properties, but small allocations could contribute exponential risk to a 60\/40 portfolio.\u201d JPMorgan <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/am.jpmorgan.com\/us\/en\/asset-management\/adv\/insights\/market-insights\/market-updates\/on-the-minds-of-investors\/does-crypto-deserve-a-place-in-portfolio-construction\/\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">wrote<\/a> in December 2024: \u201cWhile Bitcoin\u2019s returns have been impressive, they\u2019ve come with extraordinary volatility.\u201d<\/p>\n<p><em><strong>Related: <\/strong><\/em><a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/black-rock-increases-strategy-stake-to-5-after-micro-strategy-s-rebranding\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/news\/black-rock-increases-strategy-stake-to-5-after-micro-strategy-s-rebranding\"><em><strong>BlackRock increases stake in Michael Saylor\u2019s Strategy to 5%<\/strong><\/em><\/a><\/p>\n<h2>Bitcoin volatility on display as BlackRock\u2019s BTC ETF sees outflows<\/h2>\n<p>The volatility of Bitcoin was on full display on Feb. 28, with the coin seeing a high of $85,122 and a low of $78,215. The largest cryptocurrency by market capitalization has not been immune to the macroclimate that has spooked investors, including the <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/crypto-sentiment-plummets-extreme-fear-trump-tariffs\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/news\/crypto-sentiment-plummets-extreme-fear-trump-tariffs\">threat of a global trade war<\/a> and <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-below-80k-macroeconomic-uncertainty\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-below-80k-macroeconomic-uncertainty\">US economic uncertainty<\/a>.<\/p>\n<p>BlackRock\u2019s Bitcoin ETF has felt the effects as well, with investors <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/blackrock-bitcoin-fund-sheds-420-million-etf-losing-streak-extends\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/news\/blackrock-bitcoin-fund-sheds-420-million-etf-losing-streak-extends\">pulling out $420 million on Feb. 26 alone<\/a>, the largest outflow since the iShares Bitcoin ETF Trust launched in January 2024. Other Bitcoin ETFs saw outflows on Feb. 26 as well, with preliminary figures from CoinGlass showing $756 million leaving the funds.<\/p>\n<p><em><strong>Related: <\/strong><\/em><a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-futures-and-spot-etf-traders-capitulate-as-btc-looks-for-bottom\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/news\/bitcoin-futures-and-spot-etf-traders-capitulate-as-btc-looks-for-bottom\"><em><strong>Bitcoin futures and spot ETF traders capitulate as BTC looks for a bottom<\/strong><\/em><\/a><\/p>\n<p>Despite the outflows, Michael Gates, lead portfolio manager for the firm\u2019s Target Allocation ETF model suite, wrote in an investment commentary dated Feb. 27, \u201cWe believe Bitcoin has long-term investment merit and can potentially provide unique and additive sources of diversification to portfolios.\u201d<\/p>\n<p>On Feb. 26, the Crypto Fear &#038; Greed Index, a key tracker of Bitcoin and crypto sentiment, <a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-crypto-sentiment-tracker-levels-decline-celsius-terra-3ac\" rel=\"null\" target=\"null\" text=\"null\" title=\"null\">had slipped to \u201cextreme fear\u201d or a score of \u201c10.\u201d<\/a> That level had not been seen since June 2022, when Three Arrows Capital (3AC) started to see its downfall.<\/p>\n<p><em><strong>Magazine: <\/strong><\/em><a rel=\"nofollow\" target=\"_blank\" data-ct-non-breakable=\"null\" href=\"https:\/\/cointelegraph.com\/magazine\/bitcoin-etf-coinbase-honeypot-hackers-government-trezor-ceo\/\" rel=\"\" target=\"_self\" text=\"null\" title=\"https:\/\/cointelegraph.com\/magazine\/bitcoin-etf-coinbase-honeypot-hackers-government-trezor-ceo\/\"><em><strong>Bitcoin ETFs make Coinbase a \u2018honeypot\u2019 for hackers and governments \u2014 Trezor CEO<\/strong><\/em><\/a><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\" label=\"Subscription Form: Markets Outlook\"\/><\/div>\n","protected":false},"excerpt":{"rendered":"<p>BlackRock, a global investment firm with $11.5 trillion in assets under management, has added its Bitcoin exchange-traded fund (ETF) to its model portfolio product, according to a Feb. 28 report from Bloomberg. Portfolios that allow for alternative assets will be able to put a 1%\u20132% allocation into the firm\u2019s iShares Bitcoin ETF Trust (IBIT), potentially [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":376850,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-376849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=376849"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376849\/revisions"}],"predecessor-version":[{"id":376853,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/376849\/revisions\/376853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/376850"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=376849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=376849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=376849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}