BlackRock's Bitcoin Recommendation

In a recent report, BlackRock, one of the world's largest asset managers, advised interested investors to consider allocating up to 2% of their portfolio to Bitcoin, the leading cryptocurrency. The recommendation comes from a team of senior executives including Samara Cohen, Chief Investment Officer of ETFs, and Paul Henderson, Senior Portfolio Strategist of BlackRock Investment Institute.

Rationale for Bitcoin Allocation

The report highlights that Bitcoin's potential to be less correlated with other major asset classes and to offer a diversified source of return makes it a worthy consideration in a multi-asset portfolio. However, the report also cautions investors about Bitcoin's risks, such as its volatility and vulnerability to sharp selloffs.

BlackRock's Bitcoin ETF Success

BlackRock was among the ten companies that launched new exchange-traded products tied to Bitcoin in January, marking one of the most successful ETF launches in history with over $100 billion in assets. BlackRock's iShares Bitcoin Trust currently holds the largest share of these assets, with $51.1 billion.