BlackRock Includes iShares Bitcoin Trust in Alternative Asset Model Portfolio
BlackRock has included the iShares Bitcoin Trust (IBIT) in its model portfolios for the first time, allocating 1% to 2% to this fund.
- The addition allows advisors and platforms to adjust portfolios based on investment needs.
- Michael Gates, lead portfolio manager, highlighted bitcoin's role as a store of value and hedge against U.S. dollar dominance and political instability.
- Gates argued that these features provide diversification and risk premia for traditional portfolios.
- BlackRock manages approximately $130 billion in assets across its model portfolios.
This move is significant as it marks the first instance of BlackRock incorporating bitcoin into its models.