BlackRock Recommends Bitcoin Allocation With Addition to Its Model Portfolio
BlackRock, the worlds largest asset manager by assets under management, recently recommended Bitcoin allocation by including the asset in its model portfolios.The prominent asset manager has been big on Bitcoin and its rare qualities. Now, it has taken another step in promulgating the pioneering cryptocurrency by recently adding it to its model portfolio offerings.BlackRock confirmed on Friday that it has added the iShares Bitcoin Trust (IBIT)the fastest-growing fund in ETF history, providing alternative exposure to Bitcointo the Target Allocation with Alternatives models.BlackRock Adds Bitcoin to Institution-Tailored Portfolio ModelFor perspective, a model portfolio is a collection of predefined asset allocations tailored to meet clients' risks and reward objectives. Asset managers alter these portfolios over time according to changing market conditions and clients' dispositions.On Thursday, BlackRock added IBIT to the Target Allocation with Alternatives and Target Allocation with Alternatives Tax-Aware portfolios. The asset manager confirmed adding 1% to 2% of the Bitcoin-focused product to the model portfolios.Michael Gates, the lead portfolio for the BlackRock alternative model portfolio, noted that several theses confirm intrinsic value and long-term investment merits. Some include the assets scarce property and track record of hedge against inflation.
Text source: The Crypto Basic
