BlackRock's Sizing Bitcoin in portfolios report concludes the following:



By allocating no more than 2% to bitcoin, investors would: 1) introduce a very different source of return and risk; and 2) manage risk exposure to bitcoin. We think investors who choose to allocate to bitcoin should regularly review bitcoin’s changing nature and their allocation.

$BTC is becoming more accessible to institutional investors. Wider adoption and trading could reduce its volatility and make its low correlation with equities more stable. Lower volatility would trim bitcoin’s contribution to portfolio risk and allow investors to up their allocation.

Yet broad adoption could also mean bitcoin loses the structural catalyst for further sizable price rises. The case for a permanent holding may then be less clear-cut and investors may prefer to use it tactically to hedge against specific risks, similar to gold.
BTC0.89%
IN-1.32%
MORE2.29%
THINK-3.16%
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