Golden Financier
  • Investing
  • Stock
  • Latest News
  • Editor’s Pick
  • Economy

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Popular Topics
    • Crude oil faces extended downside risks amid ample supply through year-end
    • China’s export curbs on critical minerals raise alarms for global automakers
    • China plans major Airbus deal before EU leaders’ visit, report says
    • Putin’s war economy gamble: how long can Russia sustain the cost?
    • Goldman Sach’s GPIQ ETF is beating JPMorgan’s JEPQ: Is it a buy?
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions
    Golden Financier
    • Investing
    • Stock
    • Latest News
    • Editor’s Pick
    • Economy
    • Stock

    BlackRock adds Bitcoin ETF to model portfolio: report

    • March 1, 2025
    • admin

    BlackRock, the world’s largest asset manager, is incorporating Bitcoin into its $150 billion model-portfolio universe.

    The firm is adding a 1% to 2% allocation of the iShares Bitcoin Trust ETF (IBIT) to its target allocation portfolios that allow for alternatives, as per a Bloomberg report.

    While this represents a small subset of BlackRock’s overall model-portfolio business, it marks a significant step in integrating Bitcoin into mainstream investment strategies.

    Model portfolios, which bundle funds into ready-made investment strategies for financial advisers, have grown in prominence in recent years.

    Changes to these portfolios can trigger substantial capital flows, making BlackRock’s decision noteworthy at a time when cryptocurrency sentiment remains weak.

    “We believe Bitcoin has long-term investment merit and can potentially provide unique and additive sources of diversification to portfolios,” wrote Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF model suite, in investment commentary dated February 27.

    BTC price continues slide

    The move comes amid declining Bitcoin prices and broader market uncertainty.

    Bitcoin’s decline extended into Thursday night and Friday, dropping over 7% in a matter of hours from above $84,000 to below $79,000.

    This comes after the cryptocurrency entered a technical bear market earlier in the week.

    For the week, Bitcoin has fallen more than 18%, sliding from Monday’s high of $96,500 to a low of $78,258 on Friday—its steepest weekly drop in three years. The token has now corrected nearly 30% from its all-time high of $109,588, reached on January 20.

    Bitcoin’s well-documented volatility was a key consideration in BlackRock’s decision to limit the portfolio weighting to a range of 1% to 2%, as outlined in a December paper from the BlackRock Investment Institute.

    The firm warned that exceeding a 2% allocation would significantly raise crypto’s share of overall portfolio risk.

    Despite recent outflows, IBIT remains one of the most successful ETF launches in history.

    Since its debut in January 2024, the fund has attracted more than $37 billion in inflows.

    According to BlackRock, demand for Bitcoin exposure within model portfolios remains strong, providing a potential source of future inflows.

    Alongside the IBIT allocation, BlackRock made several other portfolio adjustments.

    Cooling earnings expectations prompted the firm to trim its equity overweight to 3% from 4%, while bringing its tilt toward growth strategies closer in line with value trades.

    In fixed income, BlackRock reduced its long-duration exposure, shifting billions of dollars between its products.

    One of the most notable moves was a record $2.3 billion inflow into the iShares 10-20 Year Treasury Bond ETF (TLH), while $1.8 billion exited the iShares 20+ Year Treasury Bond ETF (TLT).

    BTC ETF outflows

    Bitcoin ETFs, however, faced significant outflows. On Thursday, BlackRock’s IBIT saw $189 million in net redemptions, the largest among spot Bitcoin ETFs.

    WisdomTree’s BTCW and Valkyrie’s BRRR recorded the second and third highest outflows at $53.7 million and $12.8 million, respectively.

    Meanwhile, Ark & 21Shares, Invesco, and Hashdex saw no notable fund movements, while Bitwise’s BITB was the only spot BTC ETF in the US to record net inflows, adding $17.6 million.

    Over the past eight days, total outflows from spot Bitcoin ETFs—including those from BlackRock, Fidelity, and Grayscale—have surpassed $3.2 billion.

    The heaviest redemptions occurred earlier in the week, with net outflows of $1.1 billion on February 25 and $754 million on February 26.

    Bloomberg senior ETF analyst Eric Balchunas noted that Bitcoin ETFs were “feeling the pinch” but emphasized that the outflows represent less than 2% of total assets, suggesting that most investors are holding their positions.

    Despite the recent withdrawals, Bitcoin ETFs have performed strongly in 2024, with net inflows reaching $36.85 billion.

    Total net assets across all spot Bitcoin ETFs currently stand at over $94.3 billion, representing approximately 5.69% of Bitcoin’s total market capitalization.

    The post BlackRock adds Bitcoin ETF to model portfolio: report appeared first on Invezz


    admin

    Previous Article
    • Stock

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    • March 1, 2025
    • admin
    View Post
    Next Article
    • Economy

    ‘You’re gambling with World War III’: Trump and Zelenskyy engage in heated argument in the Oval Office

    • March 1, 2025
    • admin
    View Post

      Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


      By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
      Popular Topics
      • Crude oil faces extended downside risks amid ample supply through year-end
      • China’s export curbs on critical minerals raise alarms for global automakers
      • China plans major Airbus deal before EU leaders’ visit, report says
      • Putin’s war economy gamble: how long can Russia sustain the cost?
      • Goldman Sach’s GPIQ ETF is beating JPMorgan’s JEPQ: Is it a buy?

      Input your search keywords and press Enter.