BlackRock Increases Allocation To Bitcoin ETF In Investment Portfolio

According to PANews, BlackRock Inc. is set to increase its allocation to the iShares Bitcoin Trust ETF (IBIT) by 1% to 2% within its target allocation investment portfolios that permit alternative assets. This move, although a small part of BlackRock's overall model portfolio business, could open a new demand channel for IBIT, especially amid a downturn in cryptocurrency market sentiment. Model portfolios, which package funds into ready-made strategies for financial advisors, have seen rapid growth in recent years, and adjustments in their holdings can lead to significant capital inflows or outflows. Michael Gates, the chief portfolio manager for BlackRock's target allocation ETF model portfolio series, stated in an investment commentary on February 27 that the company believes in the long-term investment value of Bitcoin and its potential to provide a unique and additional source of diversification for portfolios. A BlackRock spokesperson confirmed the adjustment in the model portfolio's allocation. Earlier today, Bloomberg analysts reported that BlackRock is said to have added IBIT to one of its smaller model portfolios.