PANews reported on December 12 that according to Forbes, the world's largest asset management company BlackRock suggested in its research report "Bitcoin Size in Portfolios" that it is a reasonable choice to allocate 1% to 2% of the portfolio funds to Bitcoin. BlackRock believes that Bitcoin, as a tool for portfolio diversification, has similar risk characteristics to the "Big Seven" stocks such as Google, Amazon, and Apple, and its low correlation can reduce overall investment risks.
BlackRock pointed out that the high volatility of Bitcoin makes a higher proportion of allocation less feasible, and a 1% allocation will account for a 2% risk weight, while a 2% allocation will increase to 5%. Nevertheless, BlackRock expects that Bitcoin may be used to hedge risks like gold in the future, and its return characteristics will change significantly.
