Market Chatter: BlackRock to Add Bitcoin ETF to Target Allocation Portfolios

BlackRock plans to soon add its iShares Bitcoin Trust ETF to its model portfolios for the first time in a move that could create new demand for the exchange traded fund, Bloomberg News reported Friday, citing BlackRock commentary and other company documents it viewed. The asset manager packages multiple ETFs in its target allocation portfolios to reflect different investment strategies and provides investment advisers with a ready-made mix of stocks, bonds and other assets rather than needing to buy them individually. In an investment commentary this week viewed by Bloomberg, Michael Gates, the lead portfolio manager for BlackRock's Target Allocation ETF, said the decision shows how the company believes crypto has long-term merit for investment and can potentially provide diversification to portfolios. Blackrock advisers recommended the ETF should constitute between 1% to 2% of model portfolios to balance overall risk, according to the report. BlackRock did not immediately respond to a request from MT Newswires seeking comment. (Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)