BlackRock wants to stop bitcoin ETF outflows with 1-2% allocation target
Crypto is in a bear market, and spot bitcoin (BTC) ETF outflows are worsening the decline. Negative since February 1, investors have withdrawn net funds from BTC spot ETFs for 11 of their last 13 trading days. However, a catalyst to reverse these outflows might have recently arrived when asset management giant BlackRock announced that it would begin recommending BTC in model portfolios for the first time. According to new advice for clients who opt into strategies that permit alternative investments, BlackRock advisors will begin suggesting 1-2% portfolio sizing for the company’s spot BTC ETF, the iShares Bitcoin Trust ETF (Nasdaq: IBIT). Investors have withdrawn net funds from bitcoin ETFs on 11 of the past 13 trading days. With CEO Larry Fink taking almost every opportunity to speak positively in media appearances about the world’s largest digital asset, he emboldened his lead portfolio manager of BlackRock target allocation ETF models, Michael Gates. Gates...