BlackRock's Bold Bitcoin Strategy: High Bitcoin Portfolio Allocation Recommended

BlackRock, the world’s largest asset manager, appears to be going all-in on Bitcoin. In addition to its recently filed spot ETF application, the company also recommended the best portfolio allocation for the world’s largest digital asset.

Economic analysts have been digging into BlackRock’s previous reports on the best investment portfolios in terms of risk and return. Their findings have a big impact on Bitcoin, and if these recommendations are implemented, the value of Bitcoin could rise to new highs.

BlackRock Bitcoin Drive

On July 25, Blockware’s Joe Burnett commented on BlackRock’s 2022 Best Bitcoin Allocations report.

Notably, the asset manager recommended 84.9% BTC, 9.06% stocks, and 6.04% bonds. Burnett commented:

“If all investors followed BlackRock’s optimal Bitcoin allocation, Bitcoin would be worth 5 times more than all stocks, real estate, and bonds combined.”

He speculated that if total global wealth today were around $800 trillion, then the price of Bitcoin would be $1.9 trillion.

Economist Alessandro Ottaviani echoed this sentiment, commenting:

“Sooner or later, it will become clear to everyone that Bitcoin is a must-have in every portfolio.”

“Despite Bitcoin’s extreme volatility, significant positive skewness leads to significant allocations and a dominant position in the utility function,” BlackRock wrote at the time.

Analyst “PlanB” re-released his stock-to-flow model on July 25, saying we are in the early stages of a bull run, adding:

“BlackRock certainly wants to buy low before the ETF is approved and before the second phase of the full bull market begins.”

Although the paper was written last year, it has now been widely shared on crypto Twitter.

Bitcoin Spot ETF Outlook

On July 25, Bloomberg’s exchange-traded fund expert James Seyffart shared an updated list of dates to watch for the current Bitcoin ETF race.

BlackRock filed for a spot ETF in mid-June; the first deadline for the SEC to respond is September 2.

However, the resubmissions for the Ark and 21Shares Bitcoin ETFs have passed their first deadline and are approaching their second deadline of August 13.

Bitwise, VanEck, Wisdomtree, Invesco, Fidelity and Valkyrie all have their first deadlines in early September.

The Bitcoin ETF race. Source: Twitter/@JSeyff

The SEC has yet to approve a spot Bitcoin ETF, but analysts believe BlackRock could be the first. There is also speculation that the SEC is trying to control the crypto ecosystem through these Wall Street giants.