In a groundbreaking move for the digital asset sector, BlackRock, the $11 trillion asset manager, has added its highly successful Bitcoin ETF to its $150 billion model-portfolio universe. This decision could potentially open up a new avenue for increased demand for the iShares Bitcoin Trust (IBIT), according to a recent Bloomberg report.
The report states that BlackRock will allocate 1% to 2% of its target allocation portfolios to the Bitcoin ETF. This move comes as part of several allocation adjustments that could drive interest and demand amid the ongoing surge in cryptocurrencies over the last six months.
The addition of the Bitcoin ETF to BlackRock’s model-portfolio is significant, considering the massive growth of the cryptocurrency market since the end of 2024. With the US revamping its crypto policy and institutional investors gaining exposure to BTC through Spot Bitcoin ETFs, the industry has seen a substantial increase in value.
The approval of Spot Bitcoin ETFs, particularly the iShares Bitcoin Trust, has been a major catalyst for the growth of the cryptocurrency market. BlackRock’s decision to include its Bitcoin ETF in its model-portfolio further solidifies the legitimacy and potential of digital assets as long-term investment options.
Michael Gates, the head portfolio manager for BlackRock’s Target Allocation ETF model portfolio suit, expressed confidence in Bitcoin’s long-term investment merit and its potential to provide diversification to portfolios. Despite Bitcoin’s recent price fluctuations, with the cryptocurrency trading at under $84,000 after reaching a high of $110,000 in January, the move by BlackRock appears to be a strategic long-term play.
The prospects for Bitcoin’s continued growth remain strong, and BlackRock’s endorsement of the digital asset through its model-portfolio inclusion could further bolster confidence in the cryptocurrency market. This move by BlackRock underscores the increasing mainstream acceptance and adoption of digital assets as legitimate investment options.
Overall, BlackRock’s decision to add its Bitcoin ETF to its $150 billion model-portfolio universe signals a significant milestone for the digital asset sector and could pave the way for increased institutional demand and investment in cryptocurrencies.