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BlackRock Urges 1-2% Bitcoin Allocation, Citing Similar Risk to Tech Giants

Dec 13, 2024, 08:02 AM

BlackRock Inc., the world's largest asset manager, has recommended that investors allocate between 1% and 2% of their traditional investment portfolios to Bitcoin, comparing it to the risk profile of major tech companies like Apple, Amazon, and Nvidia. This recommendation comes as Bitcoin's price has surged past $100,000, reflecting a growing acceptance of cryptocurrency as a viable investment option. The firm's analysis suggests that this allocation level offers a similar risk to holding stocks in the 'Magnificent Seven' tech giants, which represent a significant portion of the S&P 500's market capitalization. Despite Bitcoin's well-known volatility, which can lead to double-digit drawdowns, BlackRock's CEO, Larry Fink, has expressed ambitions to tokenize the world, with Bitcoin being just the beginning. The firm currently manages $52 billion in Bitcoin assets through its ETF, highlighting the asset's growing institutional interest.