&#34;The Trump Trade&#34; ignites enthusiasm for Bitcoin investment, so what should the holding ratio be in the investment portfolio? BlackRock suggests a maximum of &#34;2%&#34;.
In its latest investment outlook report, the world's largest asset manager, BlackRock, stated that for investors wishing to hold Bitcoin, allocating up to 2% of their portfolio to Bitcoin is &#34;reasonable&#34;.
BlackRock ETF Chief Investment Officer Samara Cohen compared Bitcoin to the &#34;Seven Giants&#34; of tech stocks in the report:
<blockquote>
Bitcoin cannot be compared to traditional assets, but from the perspective of portfolio construction, the so-called &#34;Seven Giants&#34; of large tech stocks can serve as a reference point.
These specific stocks occupy a relatively large share of risk in the portfolio, similar to the share of risk that Bitcoin occupies in the portfolio. In a traditional 60% stock and 40% bond mixed portfolio, the seven stocks each account for an average of about 1-2% of the overall portfolio, which is a reasonable range for Bitcoin exposure.
</blockquote>
The report stated that, similar to gold, Bitcoin's price fluctuations may be driven by sentiment, narratives, and momentum, which is precisely why a higher allocation ratio is not recommended; exceeding this range would significantly increase Bitcoin's risk share in the overall portfolio.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ccc481d9-da0b-4dd7-b1a8-282f98d52a5b.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/ccc481d9-da0b-4dd7-b1a8-282f98d52a5b.jpeg"/>
BlackRock also stated that investors need to view Bitcoin's expected returns differently: it lacks the fundamental cash flows used to estimate future returns, and the degree of adoption is important.
<blockquote>
Bitcoin may also provide a more diversified source of returns. In the long term, we believe there is no intrinsic reason for Bitcoin to be correlated with major risk assets, as its value is determined by entirely different driving factors.
</blockquote>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/5ed0483f-40ac-4c3c-80fa-c826a4f80a9e.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/5ed0483f-40ac-4c3c-80fa-c826a4f80a9e.jpeg"/>
BlackRock further stated:
<blockquote>
In the longer term, Bitcoin may become less risky, but by then, it may no longer have structural catalysts for further significant increases. Instead, investors may be more inclined to use it to hedge specific risks, similar to gold.
</blockquote>

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BlackRock stated that Bitcoin cannot be compared to traditional assets, and the "seven giants" of the US stock market can serve as a reference. On average, each of the seven stocks accounts for about 1-2% of the overall investment portfolio, and exceeding this range will significantly increase the risk proportion. In the long term, Bitcoin may become less risky, and investors may use it to hedge specific risks, similar to gold

- BlackRock's latest investment outlook suggests that investors should allocate a maximum of 2% of their portfolios to Bitcoin, considering it a "reasonable" exposure.  
- The report compares Bitcoin to major tech stocks, noting that both represent significant risk shares in portfolios, with the tech stocks averaging 1-2% in traditional allocations.  
- BlackRock emphasizes that Bitcoin's price movements are driven by sentiment and narrative, advising against higher allocations due to increased risk, while also suggesting Bitcoin may serve as a diversification tool in the long term.

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The world's largest asset manager BlackRock: 2% of the asset portfolio in Bitcoin is "reasonable"