Allegedly, the world’s largest asset manager, Blackrock, is in the portfolios of investors. Bitcoin It proposed an ambitious allocation of 28% for its assets. This information is based on information shared by investor Fred Krueger on social media platform X. is based on.
28%.
NEWS CONTINUES BELOWFrom @DzambhalaHODL . Swan attended a BlackRock institutional event where there was “strong interest” that was “not expected”
They had a quant give a presentation on valuing and modeling Bitcoin in a portfolio. He suggested what type of allocations might make sense for…
NEWS CONTINUES BELOW— Fred Krueger (@dotkrueger) February 27, 2024
As Koinfinans.com reported, the allegations were revealed at a recent private client event hosted by Blackrock. This event was focused on promoting the Bitcoin ETF IBIT.
During the special event, BlackRock executives expressed surprise at the unexpectedly strong interest in Bitcoin. This interest from institutional investors and companies signals a potential shift towards cryptocurrency in the traditional financial sector.
In the presentation made at the event, how Bitcoin can be evaluated and modeled in a portfolio was outlined, especially for more conservative institutional investors. The suggestion that a 28% allocation to Bitcoin might make sense has become a topic of discussion within the industry.
However, despite the enthusiasm generated by the event, some industry experts question the feasibility of such a high allocation. Critics have expressed concern, pointing out that the proposed percentage seems excessively high, especially after considering Blackrock’s commitment to the Bitcoin ETF.
However, Swan’s managing director, Steven Lubka, clarified that the proposal was not an active strategy in Blackrock’s funds, but rather a theoretical proposal deemed “not unreasonable” by one quant. Lubka also cited a peer-reviewed paper published by Blackrock arguing for the mathematical optimality of a high Bitcoin allocation. This may help the ambitious figure gain some more credibility.
