BlackRock To Add Bitcoin To Global Allocation Fund

By Kevin • January 10, 2023 10:35 am • Comments

BlackRock is the world’s largest asset manager as it currently manages assets that add up to around $10 trillion in total which is several times larger than the entire market cap of crypto.

The financial giant just announced that it will be adding Bitcoin to its Global Allocation Fund which would allow investors on the traditional markets to gain exposure to Bitcoin.

This is important because it allows for more outside capital to enter the market as gaining direct access to crypto like Bitcoin is not always convenient.

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This fund is a very prominent strategy of the firm is the fund also invests in things like corporate and government equity which makes it a very diversified fund for large institutional players.

The fact that Blackrock has added Bitcoin to the fund’s portfolio has officially confirmed that crypto is a must have for a diversified portfolio and that not having it could mean missing out on major future growth opportunities.

CoinSpeaker reports:

The BlackRock Global Allocation Fund presently manages roughly $15 trillion in assets, and the addition of Bitcoin should see these numbers swell further.

Furthermore, this BTC development should also see white-collared individuals such as nurses and teachers buy Bitcoin alongside other equities and assets.

The fund is usually recommended to white-collar professionals that want to invest savings but lack time to track the market. The reason why it sees such high recommendation value is due to its diverse nature. In addition, the BlackRock global fund also tries to track global growth, thereby protecting it from unsavory events in one country.

In a filing, BlackRock said:

“The Fund may invest in cash-settled bitcoin futures that are traded on commodity exchanges registered with the Commodity Futures Trading Commission.”

Just a few years ago, many would not have expected crypto to be a part of this coveted global fund which speaks a lot about the progress that the industry has made.

The most important thing to note is that funds like these often have a reputation of being conservative.

This means that it aims not to make the highest Return-On-Investment (ROI) for investors due to wanting to avoid excessive risk.

Instead, the purpose is to steadily grow the wealth of the portfolio in a stable fashion and adding Bitcoin to the fund means that Bitcoin even has a place for conservative investment strategies.

As a result, this may make it more available for things like retirement funds and pension funds which ultimately unlocks a huge amount of capital.

CryptoPolitan concludes:

After a drawn-out crypto winter, the industry is finally receiving a spark of hope thanks to BlackRock’s announcement to add Bitcoin to its Global Allocation Fund. However, this could be one of the most bullish events the cryptocurrency market has seen in recent years and marks a significant milestone for this burgeoning sector.

BlackRock’s investments in Bitcoin will be deliberate and calculated, but they are sure to have an immense impact on the coin’s price appreciation.

In the coming months, we may witness trillions of dollars being injected into the market as other prominent investment firms join BlackRock in their bullish outlook on Bitcoin. Also, this could be a catalyst for BTC to skyrocket, and an indirect beneficial effect might spill over onto altcoins.

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