BlackRock: Institutional investment in Bitcoin may curb some volatility, but it will reduce the return on Bitcoin investments
According to Reuters, BlackRock advises investors not to exceed 2% of their total investment in Bitcoin. In response, a report released by BlackRock's Investment Institute suggests that broader institutional investment in Bitcoin could suppress some of its volatility. Although this might enable investors to increase their allocation size, it could also reduce the eye-popping returns Bitcoin has delivered since its inception.
Looking ahead, if Bitcoin does achieve widespread adoption, investing in it may become less risky. However, at that point, Bitcoin may no longer have structural catalysts for significant further increases.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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