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BlackRock, the world\u2019s largest asset management firm, has reportedly incorporated its iShares spot Bitcoin (BTC<\/a>) exchange-traded fund (IBIT) into some of its model portfolios.<\/p>\n Bloomberg, citing a BlackRock investment outlook that its journalists had viewed, reports<\/a> that the firm added a 1-2% allocation for IBIT in model portfolios that allow for alternative investments.<\/p>\n Model portfolios are a basket of different investments crafted by a financial advisor.<\/p>\n Michael Gates, lead portfolio manager for BlackRock\u2019s Target Allocation ETF model portfolio suite, reportedly wrote in an investment commentary this week that the firm believes Bitcoin has \u201clong-term investment merit and can potentially provide unique and additive sources of diversification to portfolios.\u201d<\/p>\n In January, BlackRock CEO Larry Fink\u00a0said<\/a> that sovereign wealth funds could drive the price of Bitcoin higher if they attempt to hedge against \u201clocal fears,\u201d such as inflation and political or economic uncertainty.<\/p>\n \u201cIf you\u2019re frightened of the debasement of your currency or you\u2019re frightened of the economic or political stability of your country, you can have an internationally based instrument called Bitcoin that will overcome those local fears.<\/em><\/p>\n And so I\u2019m a big believer in the utilization of that as an instrument, and so if that becomes true and you see that it could be a proper hedge against hope securities or equities, the question is, could you see it be a 2% or 5% allocation?<\/em><\/p>\n I was with a sovereign wealth fund during this week and that was the conversation. Should we have a 2% allocation? Should we have a 5% allocation? If everybody adopted that conversation, it would be $500,000, $600,000, $700,000 per Bitcoin.\u201d<\/em><\/p>\n IBIT is the largest Bitcoin ETF, with $47.89 billion worth of assets under management (AUM), according to data from Coinglass<\/a>.<\/p>\n The U.S. Securities and Exchange Commission (SEC) greenlit the first spot market Bitcoin ETFs in January 2024, bringing in billions of dollars worth of inflows to the top digital asset by market cap. The regulator subsequently approved<\/a>\u00a0Ethereum (ETH<\/a>) ETFs for trading in July.<\/p>\n Don’t Miss a Beat \u2013 Subscribe<\/a> to get email alerts delivered directly to your inbox <\/span><\/em>   Generated Image: Midjourney<\/em><\/span><\/p>\n<\/p><\/div>\n
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\nDisclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.<\/h6>\n<\/div>\n