The post BlackRock Incorporates Bitcoin ETF Into Model Portfolio, Suggesting Potential for Growth Amid Current Market Volatility appeared on BitcoinEthereumNews.com.

BlackRock’s recent move to add its Bitcoin ETF to its model portfolio marks a significant development in the crypto investment landscape. This strategic addition aligns with BlackRock’s vision of incorporating digital assets as a legitimate part of diversified investment portfolios. According to a statement by the firm, “We believe Bitcoin has long-term investment merit and can potentially provide unique and additive sources of diversification to portfolios.” BlackRock’s Bitcoin ETF added to its model portfolio could reshape crypto investments, offering diversification despite market volatility. BlackRock’s Strategic Move: Integrating Bitcoin into Model Portfolios In a push to integrate digital assets into mainstream finance, BlackRock, with its impressive $11.5 trillion in assets under management, has officially included its iShares Bitcoin ETF Trust in its model portfolio product. This inclusion enables financial advisers to allocate between 1% and 2% of portfolios to Bitcoin. As detailed in a report from Bloomberg, the allocation is designed to temper Bitcoin’s notorious volatility, which the firm deems a “reasonable range” for mitigating risk within diversified investment strategies. The larger context reveals that BlackRock’s model portfolios, with a total value of $150 billion, cater to financial advisers managing client assets. These portfolios are structured to support various investment objectives, including growth and capital preservation. As traditional portfolio managers begin to recognize cryptocurrency as an asset class, this move not only legitimizes Bitcoin but also suggests that institutional acceptance is slowly solidifying. Market Response: Bitcoin’s Volatility and ETF Outflows Despite BlackRock’s supportive stance on Bitcoin, market reactions have been mixed. On February 28, Bitcoin exhibited dramatic price fluctuations, ranging from a high of $85,122 to a low of $78,215, underscoring its inherent volatility. Consequently, BlackRock experienced significant outflows from its Bitcoin ETF, totaling $420 million on February 26—the highest since the ETF’s launch in January 2024. This pattern reflects broader…

---

Filed under: News - @ February 28, 2025 7:27 pm