Leading asset manager BlackRock (BLK) is urging investors to allocate up to 2% of their portfolio to Bitcoin (BTC).
Senior Portfolio Strategist Paul Henderson and Chief Investment Officer of Exchange-Traded Funds (ETFs) Samara Cohen recommend that investors gain exposure to the cryptocurrency.
In a paper, the two BlackRock executives outline the advantages of Bitcoin inside a well-diversified portfolio.
They also say that Bitcoin could improve overall portfolio results for investors who have a tolerance for risk.
The paper also highlights the dangers associated with Bitcoin and cryptocurrencies in general, stressing volatility and rapid price drops that often occur.
BlackRock has an interest in recommending Bitcoin as the company currently runs the iShares Bitcoin Trust (IBIT), which is the world’s largest BTC ETF with more than $20 billion U.S. of assets under management.
In all, about a dozen Bitcoin ETFs that launched in the U.S. this year have attracted a record-setting $100 billion U.S. of investor capital.
The price of Bitcoin is currently at $100,081.60 U.S., having risen 126% this year. BlackRock’s stock is up 32% on the year and trading at $1,058.82 U.S. per share.
