Source: Reference

BlackRock, the world's leading asset management firm, recommends that investors allocate 1-2% of their portfolio to Bitcoin. This allocation is equivalent to investing in large technology companies like Amazon, Microsoft, and Nvidia in a standard portfolio of 60% stocks and 40% bonds.

BlackRock warns that a higher allocation may increase the overall risk of the portfolio. They assess that Bitcoin has profit potential based on its level of adoption, is not correlated long-term with other risk assets, and can serve as a risk-hedging tool similar to gold in the long term. Since its launch in January 2024, Bitcoin spot ETFs have garnered significant interest, with total net assets exceeding $100 billion in November.

BlackRock currently manages approximately $11.5 trillion in assets and is the largest issuer of Bitcoin spot ETFs in the world, iShares Bitcoin Trust (IBIT), holding nearly $54 billion in net assets, surpassing even the gold ETF (IAU) in November.