BlackRock says 1-2% a ‘reasonable’ Bitcoin portfolio allocation
The recommendation applies to investors who wish to hold Bitcoin, the asset manager said.
BlackRock, the world’s largest asset manager, said an up to 2% portfolio allocation is “reasonable” for investors who wish to hold Bitcoin (BTC), according to a Dec. 12 report.
The report, which was shared with Cointelegraph and first reported by Bloomberg, says 1-2% is “a reasonable range for a Bitcoin exposure” but cautions that larger allocations “would sharply increase Bitcoin’s share of the overall portfolio risk.”
Meanwhile, a 1-2% BTC allocation poses “on average, about the same share of overall portfolio risk” as a typical allocation to “the ‘magnificent 7’ group of mostly mega-cap tech stocks” in a portfolio comprising 60% stocks and 40% fixed income assets, BlackRock said.
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Author: Alex O’Donnell
