BlackRock Adds Bitcoin to Its “Global Allocation Fund” Portfolio – Cryptonium News

BlackRock Adds Bitcoin to Its “Global Allocation Fund” Portfolio

Global Investment Fund Blackrock Adds Bitcoin to Portfolio

Blackrock has added bitcoin to its passive investor fund. BlackRock is known for investing globally in both corporate and government stocks, bonds, and short-term securities with no fixed restrictions.
The fund’s announcement states that under normal market conditions, at least 70% of its assets will be invested in securities of corporate and government issuers. The fund also attempts to invest in securities that the investment advisor believes are undervalued.

What else does the fund do when it adds bitcoin to its portfolio?

The fund invests in stocks of small, fast-growing companies and high-yielding fixed income securities. The fund may invest in cash-settled bitcoin futures traded on commodity exchanges registered with the

Commodity Futures Trading Commission.

This is the first general fund to add bitcoin to its package, demonstrating that cryptocurrency assets have established themselves as a sound investment vehicle. Cryptocurrencies have their ups and downs, but for a fund like Global Allocation, which is primarily a long-term investment, bitcoin returns have typically increased over four years.

Will other funds do the same?

Other funds may follow Blackrock’s lead, especially if that fund shows significant returns that outpace its competitors after two years. This is a clear indication that bitcoin is becoming an increasingly important asset for conservative funds. Despite the crisis and market downturn, bitcoin remains an attractive asset to include in a fund’s investment portfolio.

For example, the director of the virtual currency exchange ShapeShift believes that bitcoin will rise quickly and be worth $40, 000 by this summer; ShapeShift’s CEO expects a new bull cycle in the virtual currency market. And MicroStrategy continues to add bitcoin to its treasury: between November 1 and December 21, 2022, the firm purchased 2, 395 BTC at an average price of $17, 181, for a total of $4, 280 million. All results cannot be uploaded. Repeated retries…