BlackRock now considers Bitcoin as a global alternative asset, highlighting its potential for portfolio improvement.

From Investing.com

October 4, 2024 11:30:20 am:

BlackRock now views Bitcoin as a global monetary alternative, changing their perspective on the cryptocurrency, Jay Jacobs of BlackRock stated. The presentation compared Bitcoin with traditional assets, noting its fixed supply contrasted with fluctuating U.S. markets. Bitcoin’s low correlation with stocks makes it an appealing diversifier, despite its volatility.

Bitcoin’s short track record was highlighted versus gold and Treasuries, showing its decentralized nature similar to gold’s reserves. The presentation emphasized Bitcoin’s declining volatility over time, enhancing its market maturity. Portfolios with modest Bitcoin allocations were shown to have better returns and risk-adjusted metrics, with higher allocations yielding higher returns.

Institutional recognition from BlackRock signals a shift towards Bitcoin as a viable alternative to traditional assets, hinting at a growing convergence between cryptocurrencies and established financial systems. The potential for Bitcoin to improve portfolio performance, even with its volatility, is being acknowledged by major players in the industry.

Read more at Investing.com: BlackRock Calls Bitcoin ‘Global Monetary Alternative’ By U.Today