In a noteworthy move, the world's leading asset management group BlackRock has officially added the Bitcoin ETF IBIT to its recommended asset portfolio for financial advisors. This is the first time BlackRock has taken this step, opening up greater opportunities for Bitcoin and the crypto market in general.
BlackRock Accepts Bitcoin as Part of Investment Strategy
According to Bloomberg, it has added IBIT – the Bitcoin ETF issued by this group – to the recommended portfolio for financial advisors worldwide. Notably, this portfolio has a total value of up to $150 billion as of December 2024.
BlackRock stated that investors could allocate 1-2% of their assets to IBIT as part of their portfolio diversification strategy. Mr. Michael Gates, head of ETF asset allocation model planning at BlackRock, emphasized that many factors support Bitcoin's long-term growth outlook, which drives the decision to add IBIT to the recommended portfolio.
Not only that, CEO Larry Fink has also repeatedly compared Bitcoin to 'digital gold', asserting that it is a hedge against the risk of monetary inflation. He even forecasts that Bitcoin could reach $700,000 in the future.
Important Events Paving the Way for Bitcoin and Ethereum
BlackRock's move is considered an important development, according to Bloomberg ETF analyst James Seyffart. This is the first time BlackRock has officially incorporated Bitcoin into a financial model, which could pave the way for Bitcoin and Ethereum to be integrated into large-scale investment portfolios and attract more institutional investor interest.
IBIT – The Largest Bitcoin ETF in the US
Although it has only been active for a year, IBIT has quickly become the largest spot Bitcoin ETF in the US, with BTC holdings exceeding $48 billion, accounting for about half of the Bitcoin ETF investment market share.
However, Bitcoin's sharp correction in February has affected IBIT, causing this fund to continuously record strong outflows. Specifically:
On February 26, IBIT saw outflows of $418 million, marking the worst trading session since the fund's launch.
As of February 27, 11 Bitcoin ETFs in the US have gone through 8 consecutive sessions of outflows, with a total capital withdrawal value reaching $2.7 billion.
The peak was on February 25, when Bitcoin ETFs saw outflows of $1.1 billion, the highest ever.
The Interest of Major Institutions in Bitcoin ETFs
Although the digital currency market is in a correction phase, more and more major financial institutions are revealing their holdings of Bitcoin ETFs. Some notable names include:
The national investment fund of the country
Wisconsin State Investment Board
Barclays Bank
Goldman Sachs
These are influential financial institutions globally, showing increasing interest in Bitcoin and related ETF products.
SEC Under Donald Trump – More Open to Crypto?
Under the new US President Donald Trump, the US Securities and Exchange Commission (SEC) has shown many signs of a more open stance towards the crypto market. Some important moves include:
Receiving ETF applications for major altcoins like Solana (SOL), XRP (XRP), Litecoin (LTC).
Considering the possibility of allowing staking of crypto assets in ETFs, which could drive new capital into the market.
These are positive signals for the cryptocurrency industry, indicating that US policy may support the development of the crypto market in the near future.
Conclusion: Is BlackRock's Shift Changing the Game?
BlackRock's official addition of the Bitcoin ETF IBIT to the recommended investment portfolio is an important milestone, reflecting the growing recognition of Bitcoin by financial institutions.
Although Bitcoin and ETF funds are facing selling pressure in the short term, in the long term, this could be a stepping stone for BTC to continue growing, especially as more and more major financial institutions enter the market.
However, investors should also note that crypto remains a highly volatile and risky market, so careful consideration is needed before making investment decisions.
