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BlackRock Names Optimal Bitcoin Share in Investor's Risk Portfolio – You'll Be Surprised

Published 2023-07-26, 09:19 a/m
© Reuters.  BlackRock Names Optimal Bitcoin Share in Investor's Risk Portfolio – You'll Be Surprised
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U.Today - Crypto analyst and trader Michael van de Poppe has posted a screenshot from a document, in which the leading global fund manager names an optimal share of Bitcoin in a risk portfolio for investors.

Poppe shared a screenshot from a BlackRock (NYSE:BLK) document called "Asset Allocation with Crypto: Application of Preferences for Positive Skewness," in which the authors name the Bitcoin share in an optimal risk portfolio equal to 84.9%. Even though the document is dated early 2022, it still seems to be relevant for the crypto investment community.

The analyst then took a jab at those who expect the flagship cryptocurrency to decline to the $12,000 level in the near future. "I'll just buy more," van de Poppe tweeted.

BlackRock and its BTC ETF shock wave

Earlier this year, BlackRock sent shock waves among the crypto market as it filed for a Bitcoin spot ETF with the SEC regulator. It was followed by a similar application of Invesco. These moves of the investment companies pushed level.

Several other major Wall Street companies, including Fidelity, also submitted filings for their own . However, the SEC regulatory agency returned them, saying that all these document filings were inadequate. The companies then corrected them and submitted the filings once again.

Fidelity, together with Citadel Securities and Charles Schwab (NYSE:SCHW), launched a centralized exchange called EDX Markets. That also impacted the Bitcoin price positively. At the time of this writing, the leading digital currency is changing hands at $29,194, according to data provided by CoinMarketCap.

Investors keep withdrawing BTC to self-custody

Santiment on-chain data aggregator reported that it noticed Bitcoin continuing to outflow from crypto exchanges and into the self-custody of cold wallets. The analysts have also noticed that despite the recent fall below the $30,000 line, they do not see any signs of FUD or upcoming big sell-offs.

At press time, per Santiment, there are 1.17 million BTC held in wallets related to crypto exchanges; that is the smallest amount of BTC since November 2018, when the crypto winter was in full swing.

This article was originally published on U.Today

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