Just In: BlackRock Compares Bitcoin To ‘Magnificent 7’, Recommends 2% Allocation To BTC

The world’s largest asset manager, BlackRock, has made a compelling case for Bitcoin. The asset manager asserted that the flagship crypto shares a similar risk profile to the magnificent seven stocks and recommended that investors allocate up to 2% to BTC.

BlackRock Makes Compelling Case For Bitcoin

Forbes reported about a recent research report by BlackRock, which made a case for why investors should look to invest in the flagship crypto. The report, written by the firm’s analysts, stated that Bitcoin offers a risk profile similar to that of the Magnificent Seven firms (Apple, Amazon, Tesla, Nvidia, Meta, Google, and Microsoft).

In line with this, these analysts determined that a 1% to 2% allocation to Bitcoin brings about a similar risk profile to these stocks. Meanwhile, the asset manager highlighted the correlation between BTC and these traditional assets but suggested that there might be a divergence soon enough.

BlackRock claimed that this will happen because of factors such as the global fragmentation of the financial system, growing geopolitical tensions, a lack of confidence in the financial system, and growing deficits.

Despite such a strong case for BTC, companies like Microsoft are still uncertain about its potential. Microsoft shareholders recently voted against the Bitcoin proposal, which could have paved the way for the tech giant to adopt Bitcoin on its balance sheet.

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