BlackRock, the world’s biggest asset manager, seems to be fully embracing Bitcoin. On top of its recent spot ETF application, BlackRock has also suggested an ideal portfolio allocation for the top cryptocurrency.
Analysts have examined BlackRock’s prior reports on optimal portfolio construction balancing risk and return. Their analysis indicates heavy weighting toward Bitcoin, which could propel its value to new highs if these allocation tips are followed.
Between the potential ETF and advised large allocation, BlackRock appears bullish on integrating significant Bitcoin exposure as part of its investment strategies. This institutional endorsement from such a dominant asset manager signals the growing mainstream acceptance of cryptocurrency.
On July 25th, Blockware’s Joe Burnett highlighted a 2022 BlackRock report recommending nearly 85% Bitcoin allocation as optimal. Burnett noted if all investors followed this, Bitcoin’s value would exceed 5 times global equities, real estate, and bonds combined. At $800 trillion global wealth, that’s $190 million per Bitcoin.
Economist Alessandro Ottaviani agreed, stating it will eventually be clear Bitcoin is essential for every portfolio.
Last year, BlackRock wrote Bitcoin’s pronounced positive skewness dominates the utility function despite high volatility.
Analyst PlanB said we’re in the early bull market stage, adding BlackRock wants to buy Bitcoin cheap right before ETF approval and the full-blown stage 2 bull run.
On July 25th, Bloomberg’s ETF expert James Seyffart shared an updated timeline of key dates in the ongoing Bitcoin ETF approval race.
BlackRock filed for a spot in Bitcoin ETF in mid-June, with the first SEC response deadline being September 2nd.
However, the refiled Ark and 21Shares Bitcoin ETF is approaching its second deadline on August 13th after passing the first.
Other major players like Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie all have initial deadlines in early September.
The SEC is yet to approve a spot in Bitcoin ETF, but analysts believe frontrunner BlackRock could be first. Some speculate the SEC aims to control crypto by approving Wall Street giants.
The countdown is on for these firms anxiously awaiting the SEC’s ruling on a Bitcoin ETF after years of rejections.
Though written last year, the BlackRock allocation advice has resurfaced and been widely shared recently across crypto social media. It signals institutional endorsement for dominantly weighting portfolios toward Bitcoin.
