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BlackRock Added Bitcoin to Its $150 Billion Portfolio: What Does It Mean? - Coin Bulletin
BlackRock, taking an important step in strengthening institutional interest in cryptocurrency by adding Bitcoin (BTC) to the $150 billion model portfolios it manages.
BlackRock, the world's largest asset manager, allocated %1 to %2 to the IBIT fund, making room for alternative assets in its model portfolios. The move stood out for being the first time the firm has used Bitcoin in its model portfolios.
Model portfolios are known as important tools that shape investment decisions by providing ready-made strategies to financial advisors. BlackRock's model portfolios include an asset management of approximately 150 billion dollars.
Will the demand for Bitcoin increase?
BlackRock's spot Bitcoin ETF, IBIT, currently has a $48 billion asset under management and stands out as the largest spot Bitcoin fund. However, recent market corrections have affected the price of Bitcoin and the fund's performance. IBIT saw a net outflow of $418.1 million on Wednesday.
Michael gates, Chief Investment Officer responsible for BlackRock's ETF models, stated that there are several factors that increase the long-term investment appeal of Bitcoin. These include Bitcoin being seen as a store of value, an alternative to the global monetary system, providing a hedge against the dominance of the US dollar, and being part of the transition to the digital economy.
According to experts, BlackRock's inclusion of Bitcoin in model portfolios could pave the way for other major investment firms to make similar moves. This step could strengthen the position of cryptocurrency in the financial world with the increased interest of institutional investors in Bitcoin.
Adding Bitcoin to BlackRock's $150 billion model portfolios indicates that cryptocurrencies are starting to have a greater presence in the traditional financial system. As these model portfolios are followed by many investment advisors and financial institutions, BlackRock's interest in Bitcoin could lead other major fund managers to take similar steps.