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BlackRock recommends 1-2% bitcoin allocation, Step Finance plans tokenized stocks on Solana and more


2024-12-1415591 Views

From theblock by James Hunt

Quick Take

  • BlackRock, the world’s largest investment firm with $11.5 trillion in assets under management and issuer of the largest spot Bitcoin ETF, recommended allocating up to 2% of multi-asset portfolios to bitcoin in an institutional investor report on Thursday. 
  • DeFi platform Step Finance acquired early-stage startup Moose Capital, aiming to bring tokenized stock trading of major companies like Nvidia and Tesla to Solana, targeting a Q1 2025 launch.
  • Avalanche announced it raised $250 million in a locked token sale led by Galaxy Digital, Dragonfly and ParaFi Capital to support its Avalanche9000 upgrade.
  • The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

BlackRock recommends up to 2% bitcoin allocation

BlackRock, the world's largest investment firm with $11.5 trillion in assets under management and issuer of the largest spot Bitcoin

BTC -0.30%ETF, recommended allocating up to 2% of multi-asset portfolios to bitcoin in an institutional investor report on Thursday.

  • "First time they gave a specific number (they put this out because they had so much incoming on this question of how much)," Bloomberg Senior ETF Analyst Eric Balchunas noted on X, highlighting excerpts of the report.
  • "Bitcoin cannot be compared to traditional assets," BlackRock wrote. "But from a portfolio construction perspective, the 'magnificent 7' group of mostly mega-cap tech stocks is a useful starting point."
  • "In a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks each account for, on average, about the same share of overall portfolio risk as a 1-2% allocation to bitcoin. We think that's a reasonable range for a bitcoin exposure," the firm said, explaining its rationale.
  • However, going beyond that would sharply increase bitcoin's share of the overall portfolio risk, BlackRock warned.
  • BlackRock's IBIT product holds over $50 billion in assets under management, according to The Block's Bitcoin ETF Tracker.

Step Finance aims to bring tokenized stocks to Solana

DeFi platform Step Finance has acquired early-stage startup Moose Capital, aiming to bring tokenized stock trading of major companies like Nvidia and Tesla to Solana, targeting a Q1 2025 launch.




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