PANews reported on February 28 that according to Bloomberg, BlackRock Inc.'s investment outlook shows that it is increasing its allocation of 1% to 2% of funds to the $48 billion iShares Bitcoin Trust ETF (code: IBIT) in its target allocation portfolio that allows the allocation of alternative assets. Although this is only a small part of BlackRock's entire model portfolio business, this move has opened up a potential new demand channel for IBIT, especially at a time when sentiment in the cryptocurrency market is low. Model portfolios package funds into ready-made strategies and sell them to financial advisors. They have developed rapidly in recent years, and adjustments to their holdings may lead to large-scale inflows or outflows of funds.

“We believe Bitcoin has long-term investment value and may provide a unique and additional source of diversification for portfolios,” Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF model portfolio series, wrote in a Feb. 27 investment review. A BlackRock spokesperson confirmed that the company adjusted the allocation of its model portfolios.

Earlier today, Bloomberg analysts said BlackRock was said to have added IBIT to one of its smaller model portfolios .