BlackRock’s Bold Bitcoin Strategy
BlackRock the largest asset manager in the world, which is seeking approval for a spot Bitcoin exchange-traded fund
On July 25,
Blockware’s Joe Burnett commented on a 2022 BlackRock report on
optimal Bitcoin allocation.
Remarkably, the asset manager recommended 84.9% BTC, 9.06% stocks, and 6.04% bonds. Burnett commented that:
“If all investors follow BlackRock’s optimal BTC allocation, Bitcoin will be worth more than 5x the total value of all equities, real estate, and bonds.”
He speculated that if
total global wealth is around $800 trillion today, Bitcoin would be $190
million per coin.
Economist Alessandro Ottaviani added to the sentiment, commenting:
Soon or later, it will
be clear for everyone that Bitcoin is a must have in every portfolio.”
At the time, BlackRock
wrote, “Although Bitcoin has extremely large volatility, the pronounced
positive skewness leads to large allocations and dominates in the utility
function.”
Re-posting his stock-to-flow model
on July 25, analyst ‘PlanB’ said that things were in the early stage
of a bull market, adding:
“Of course BlackRock
wants to buy cheap, just before ETF approval, and just before stage-2
full-blown bull market.”
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