Cryptocurrencies
BlackRock Says 2% Bitcoin Allocation Is ‘Reasonable Range’
- The asset manager runs the world’s largest Bitcoin ETF
- Largest cryptocurrency has surged since Trump election victory
Bitcoin has surged by 140% this year.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
The world’s biggest asset manager says that Bitcoin does have a place in multi-asset portfolios — up to a certain point.
Giving Bitcoin a 1% to 2% weighting would produce a similar share of profile risk as the so-called Magnificent Seven technology stocks in a standard 60/40 portfolio of stocks and bonds, according to a BlackRock Investment Institute paper released Thursday. That’s a “reasonable range” to devote to Bitcoin, as anything beyond 2% would sharply increase crypto’s share of overall portfolio risk, the paper said.