BlackRock Suggests 2% Bitcoin Allocation for Diversified Portfolios

BlackRock, the world's largest asset manager, recommends allocating 1-2% of traditional 60/40 investment portfolios to Bitcoin, likening its risk to that of major tech stocks like Nvidia and Amazon. Despite Bitcoin's volatility and speculative nature, BlackRock sees it as a potential diversifier due to its low correlation with traditional markets. The firm suggests that a small allocation could balance portfolio risk, though it warns that future returns may become more tactical, similar to gold. BlackRock's involvement in Bitcoin includes a partnership with Coinbase and managing the largest Bitcoin ETF.