BlackRock Says 2% Bitcoin Allocation Is ‘Reasonable Range’ (1)

The world’s biggest asset manager says that Bitcoin does have a place in multi-asset portfolios — up to a certain point.

Giving Bitcoin a 1% to 2% weighting would produce a similar share of profile risk as the so-called Magnificent Seven technology stocks in a standard 60/40 portfolio of stocks and bonds, according to a BlackRock Investment Institute paper released Thursday. That’s a “reasonable range” to devote to Bitcoin, as anything beyond 2% would sharply increase crypto’s share of overall portfolio risk, the paper said.

It’s a potential blueprint for investors “who are tolerant of Bitcoin’s risk” when wondering how ...