# BlackRock Adds Bitcoin ETF to Its Portfolio, Bitcoin Rises to US$85 Thousand
BlackRock, the world's largest asset manager, has included the iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) in its investment model portfolio. With an allocation of 1% to 2%, this move provides new opportunities to attract demand for IBIT.
This move marks the first time BlackRock has added a Bitcoin ETF to its portfolio, which manages assets worth US$150 billion as of Friday (February 28). According to Michael Gates, BlackRock's chief portfolio manager quoted by Bloomberg, Bitcoin has the potential to serve as a unique store of value and a global monetary alternative.
Additionally, this asset can provide significant additional diversification in a traditional multi-asset portfolio. BlackRock noted that Bitcoin's volatility is the main reason why its allocation is limited to 2%.
Although the launch of IBIT in January 2024 recorded one of the most successful debuts with inflows exceeding US$37 billion, demand for this ETF has slowed recently. However, interest from financial advisors to include Bitcoin in portfolio strategies remains strong.
In addition to the Bitcoin ETF, BlackRock also made adjustments to its overall investment allocation. The company reduced its exposure to long-term bonds and slightly decreased its equity weight from 4% to 3%.
Interestingly, the addition of IBIT to the BlackRock model portfolio is seen as an important step towards broader institutional adoption of Bitcoin. Not only that, Bitcoin also rose again to touch US$85,538 after BlackRock announced this.
Source: Bloomberg
