BlackRock Suggests Allocation Of Funds To Buy Bitcoin

JAKARTA - Bitcoin is now increasingly considered an important asset in the global financial ecosystem. As the first cryptocurrency, Bitcoin is often referred to as digital gold' because of its rare nature and ability to be a hedge. As institutional adoption increases, Bitcoin is no longer just a speculative instrument, but has become part of a portfolio diversification strategy for many large investors.

In a recent report released Thursday, December 12 yesterday, BlackRock, the world's largest asset management company with assets more than IDR 184,000 trillion, advises investors to include Bitcoin in their multi-asset portfolio.

This suggestion is considered in line with the treatment of large technology stocks such as Apple and Microsoft. Although Bitcoin cannot be equated directly with traditional assets, BlackRock considers this cryptocurrency as a complement that offers risk diversification. The recommended Bitcoin allocation is 1-2 percent of the total portfolio, with a standard composition of 60 percent of shares and 40 percent of bonds.

Bitcoin's volatility is indeed high, but the impact on portfolio risks is similar to those of large technology stocks, said Samara Cohen, BlackRock's Chief Investment Officer for ETF and index investments, quoted by CoinSpeaker.

According to Cohen, the addition of Bitcoin can reduce risk concentration, while the dominance of technology stocks has the potential to increase this risk. However, BlackRock also warns that the too large Bitcoin allocation could significantly increase the risk of portfolios.

History notes that the price of Bitcoin has fallen by 80 percent in the previous three bearish market periods. Even so, its volatility tends to decline as correlations with the equity market increase.

Bitcoin adoption by large financial institutions like BlackRock has had a major impact on the market. The data show that the supply of Bitcoin on the exchange fell below 2.23 million BTC, indicating the involvement of massive institutions. Bitcoin ETF in the United States has even raised more than 1 million BTC, surpassing the amount of Bitcoin in Satoshi Nakamoto's wallet.

Seeing this trend, analysts predict that the price of Bitcoin could reach IDR 16 billion per coin in the coming years, especially if the United States government decides to make Bitcoin a strategic reserve. This suggestion from BlackRock marks a new chapter for cryptocurrencies as an important asset in investment today.