Summary
- BlackRock has recommended allocating 2% of the portfolio to Bitcoin.
- Bitcoin is described as having a low correlation with other assets but being highly volatile.
- The volatility of Bitcoin may be reduced as more institutions adopt it.
Global asset management firm BlackRock has stated that the appropriate allocation ratio for Bitcoin (BTC) in an investment portfolio is 2%.
On the 12th (local time), BlackRock reported that "allocating 1-2% to Bitcoin can yield a risk-return profile similar to the so-called '60/40 portfolio', which invests in stocks and bonds at a 6:4 ratio."
BlackRock noted that "Bitcoin has a relatively low correlation with other assets but is more volatile," adding, "As more institutions adopt Bitcoin, this volatility may be mitigated. However, there is also a possibility that returns could be suppressed."
Meanwhile, Bitcoin is trading at around $100,000, down 1.5% from the previous day, in the Binance Tether (USDT) market.
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
