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.”