BlackRock, the world’s largest asset manager with $11 trillion in assets, has added its Bitcoin ETF (iShares Bitcoin Trust – IBIT) to its $150 billion model portfolio universe.
This marks a significant step toward mainstream institutional adoption of Bitcoin, as these model portfolios are widely used by financial advisors and institutions to guide investment strategies.
As part of this move, BlackRock will allocate 1% to 2% of its target allocation portfolios to the Bitcoin ETF. This means more investors will gain exposure to Bitcoin through traditional investment channels, potentially increasing demand for the cryptocurrency.
This addition could further accelerate its growth since IBIT has already been one of the most successful ETF launches in history.
This decision comes at a time when Bitcoin has seen a price decline, currently trading below $84,000 after reaching an all-time high of $110,000 in January 2024. Despite this short-term dip, BlackRock remains optimistic about Bitcoin’s long-term investment potential.
According to Michael Gates, BlackRock’s head portfolio manager for target allocation ETF models, Bitcoin offers unique diversification benefits for investment portfolios.
By incorporating IBIT into its model portfolios, BlackRock is reinforcing the legitimacy of Bitcoin as an institutional-grade asset.
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