BlackRock, the world's leading asset management firm, has recently made a strong argument for Bitcoin, suggesting that the cryptocurrency shares a risk profile similar to that of top technology stocks.
The firm’s analysts have recommended that investors consider allocating up to 2% of their portfolios to Bitcoin, drawing comparisons between the digital asset and the prominent “Magnificent Seven” stocks—Apple, Amazon, Tesla, Nvidia, Meta, Google, and Microsoft.
According to BlackRock, Bitcoin’s risk characteristics align closely with those of these major companies, and a 1% to 2% allocation to Bitcoin could provide a similar risk exposure.
While Bitcoin currently exhibits some correlation with traditional equities, BlackRock anticipates this relationship may change in the near future due to factors like the fragmentation of the global financial system, increasing geopolitical instability, and a lack of trust in traditional financial structures.
Despite BlackRock’s positive stance on Bitcoin, not all major companies are embracing the digital asset.
For instance, Microsoft recently faced a shareholder vote rejecting a proposal to add Bitcoin to its balance sheet, highlighting the continued uncertainty among some corporate entities regarding the cryptocurrency’s potential.
Bitcoin giant Strategy has added another 4,980 BTC to its reserves in a purchase worth approximately $531.9 million, according to Executive Chairman Michael Saylor.
According to renowned market veteran Peter Brandt, trading isn’t the path to prosperity for the vast majority of people.
Charles Edwards, founder and CEO of Capriole Investments, has offered a fresh perspective on Bitcoin’s stalled price movement near the $100,000 mark, despite growing institutional enthusiasm.
Metaplanet has expanded its Bitcoin treasury with a new acquisition of 1,005 BTC valued at approximately $108.1 million, further cementing its status as one of the largest corporate holders of the digital asset.