BlackRock to allocate up to 2% of model portfolio to IBIT Bitcoin ETF

Blackrock, the largest asset manager in the world with more than $ 10 billions of assets under management, incorporates Bitcoin in his own model portfolio.

According to a Bloomberg report On February 28, the asset manager will allocate 1% to 2% of its bitcoin (BTC) Corporated funds to target the model’s investment portfolios. These allowances, from BlackRock Ishares Bitcoin Trust ETF under the IBIT Ticker, will be directed to the portfolios of the company which include alternative investments.

In the world of investments, model portfolios are pre-structured funds designed to offer ready-to-use strategies. They provide managed investment strategies that invest in fundraising and are marketed with financial advisers.

Model portfolios have experienced significant growth on the market, due in part by an increase in interest in digital assets and negotiated products in exchange for crypto.

The Ibit of BlackRock is currently an ETF Bitcoin Spot of $ 48 billion, holding 576,046 bitcoins, which represents around 2.9% of the total Bitcoin market share. According to Bloomberg, Blackrock plans to allocate 1% to 2% of the Ibit in its portfolio of models of $ 150 billion.

Although this $ 150 billion pool represents a small part of the overall activity of the BlackRock model portfolio, Ibit’s inclusion could considerably increase demand for Bitcoin ETF spot.

Michael Gates, principal director of the portfolio for Target Target Allowance models at Blackrock, reiterated the confidence of the company in Bitcoin as an investment.

“We believe that Bitcoin has a long -term investment merit and can potentially provide unique and additive sources for portfolio diversification,” Gates told investors on February 27.

The American Securities and Exchange commission approved Ibit and several other ETF Bitcoin Spot in January 2024. Blackrock, Fidelity Investments, Wisdomtree and Vaneck were among the companies that received regulatory approval for registration and trade in Bitcoin ETF.

Investors’ demand for these funds contributed to increasing the price of Bitcoin over $ 69,000 in March 2024. Later, an increase in interest in the middle of the US electoral cycle propelled Bitcoin to a little more than $ 109,000.

However, a sale has since lowered the BTC to $ 79,000, with important outings ETF Spot, including Ibit last week.