In what could be a massive step for the digital asset sector as a whole, BlackRock has added its highly successful Bitcoin ETF to its $150 billion model-portfolio universe. Indeed, the $11 trillion asset managers iShares Bitcoin Trust (IBIT) may be opened up to a new avenue for increased demand, according to a Bloomberg report.
BlackRock will add a 1% to 2% allocation to the Bitcoin ETF in its target allocation portfolios, the report added. Moreover, as part of several allocation adjustments, it could drive interest and demand amid the ongoing surge in cryptocurrencies that have taken place over the last six months.
JUST IN: BlackRock adds its own Bitcoin ETF into its $150 billion model-portfolio universe.
— Watcher.Guru (@WatcherGuru) February 28, 2025
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BlackRock adds Bitcoin ETF to $150 Billion Model-Portfolio as Increased Demand Could Follow
There is no understanding of how much the cryptocurrency market has grown since the end of 2024. With the US overhauling its crypto policy, the industry has seen increased value take shape. Moreover, a big part of its 2024 increase was driven by BlackRock and the approval of Spot Bitcoin ETFs.
That opened up a new way for institutional investors to gain BTC exposure. Moreover, it was iShares Bitcoin Trust that emerged as maybe the greatest ETF launch in history. Now, it could be set to for continued growth. Specifically, BlackRock had added its Bitcoin ETF to its $150 billion model-portfolio for the very first time.
Also Read: BlackRock Launches Spot Bitcoin ETF on Cboe Canada
“We believe Bitcoin has long-term investment merit and can potentially provide unique and additive sources of diversification to portfolios,” Michael Gates, the head portfolio manager for BlackRock’s Target Allocation ETF model portfolio suit, said.
The move comes as the leading crypto has had a rough few weeks. After reaching a six-figure price for the first time in late 2024, BTC is trading at under $84,000 now. That is a far cry from the $110,000 high it reached in January. However, the move looks to be a long-term play. There is no denying that the prospects for Bitcoin’s continued growth look strong.