Crypto trader and analyst Michael van de Poppe shared a copy of a BlackRock document in which the top global fund manager specifies the ideal proportion of Bitcoin for investors’ risk portfolios.
In a BlackRock paper titled “Asset Allocation with Crypto: Application of Preferences for Positive Skewness,” which Poppe provided an image from, the authors identify the Bitcoin share in an ideal risk portfolio as being equivalent to 84.9%. The paper is dated early in 2022, yet it still appears to be relevant for the community of cryptocurrency investors.
The expert then shot back at those who believe that the leading cryptocurrency would soon drop below the $12,000 mark. I’ll just purchase more, tweeted van de Poppe.
BlackRock and its BTC ETF shock wave
BlackRock shocked the cryptocurrency community earlier this year when it submitted an application with the SEC regulator for a Bitcoin spot ETF. A similar application for Invesco came after it. These actions by the investment firms raised the price of Bitcoin above the $30,000 mark.
Fidelity and a number of other significant Wall Street firms also submitted applications for their own Bitcoin spot ETFs. The SEC regulating body, however, sent them back after determining that all of these document submissions were insufficient. The businesses subsequently made the necessary corrections and resubmitted the paperwork.
A centralised exchange called EDX Markets was developed by Fidelity, Citadel Securities, and Charles Schwab. That also had a favourable effect on the price of bitcoin. According to information given by CoinMarketCap, the most popular digital currency is now trading at $29,194 at the time of this writing.
Investors keep withdrawing BTC to self-custody
The Santiment on-chain data aggregator noted that Bitcoin was still leaving cryptocurrency exchanges and moving into cold wallets for self-custody. Analysts have also noted that, despite the stock’s recent decline under $30,000, they do not foresee any FUD or impending significant sell-offs.
Since November 2018, when the crypto winter was in full swing, there have been 1.17 million Bitcoins (BTC) kept in wallets associated with crypto exchanges as of the time of publication, according to Santiment.
