bullish

Thomas

Bitcoin

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BlackRock

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Asset management behemoth BlackRock has <a href="https://www.bloomberg.com/news/articles/2024-12-12/blackrock-says-up-to-2-bitcoin-allocation-is-reasonable-range" rel="noopener noreferrer nofollow">recommended</a> gaining 1-2% exposure to Bitcoin in its recent paper.
Such an allocation would be able to provide investors with a "diverse source of risk," according to BlackRock’s Samara Cohen.
Earlier this week, billionaire Thomas Peterffy also recommended up to 3% of one's portfolio into Bitcoin. However, he also warned that it would be too dangerous to invest more than a tenth of one's assets in the volatile cryptocurrency.
According to Eric Balchunas, the leading ETF analyst, it is the first time that BlackRock has recommended a specific portfolio weighting for Bitcoin.
The largest cryptocurrency has soared by roughly 141.96% on a year-to-date basis, recently surpassing the $100,000 level for the first time. Hence, it might naturally start attracting more investor attention.
Bitcoin is currently changing hands at $101,459 after reaching an intraday peak of $102,528 earlier this Thursday. It is now just 1.9% away from surpassing its current record high of $103,679.
<h2 id="smaller-risks-and-smaller-returns">Smaller risks and smaller returns</h2>
In its paper, BlackRock has also predicted that Bitcoin could end up becoming less risky it achieves broader institutional adoption. However, this also means that its returns will become less eye-catching.
As<a href="https://u.today/bitcoin-underperforming-previous-cycles-despite-rallying-to-100k" rel="noopener noreferrer nofollow">reported by U.Today</a>, Bitcoin is currently substantially underperforming the previous bullish cycle. According to Glassnode, its volatility has been dampened due to wider institutional adoption.
BlackRock, of course, played a key role in broader Bitcoin adoption with its extremely successful Bitcoin ETF. According to the most recent<a href="https://sosovalue.com/assets/etf/us-btc-spot" rel="noopener noreferrer nofollow">data</a> provided by analytics platform SoSoValue, IBIT is now approaching $54 billion in total assets. <a href="https://u.today/blackrock-reveals-its-recommended-bitcoin-exposure" rel="noopener noreferrer nofollow">Read original article on U.Today</a>

BlackRock Reveals Its Recommended Bitcoin Exposure

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