BlackRock Adds iShares Bitcoin Trust to Model Portfolios
BlackRock has increased its crypto exposure by incorporating its iShares Bitcoin Trust (IBIT) into model portfolios that allow alternative investments. Key points include:
- BlackRock manages $11.5 trillion in assets and allocated 1% to 2% of IBIT in its Target Allocation model portfolios.
- IBIT was approved by the SEC in January 2024 and has attracted interest from institutional investors.
- As of February 21, IBIT holds over 50% of the Bitcoin ETF market, valued at approximately $56.8 billion.
- The fund competes with Grayscale's GBTC, with IBIT outperforming other Bitcoin ETFs.
- Despite heavy outflows in the crypto ETF market, BlackRock's inclusion of IBIT responds to advisor demand for exposure.
Currently, Bitcoin ETFs have seen a loss of $3.2 billion in eight days, with significant single-day outflows recorded, including $418 million from IBIT on Wednesday.