BlackRock: If BTC achieves widespread adoption, it may no longer have structural catalysts for further significant increases

Analysts including Samara Cohen, chief investment officer of BlackRock's ETF and index investments, pointed out that although Bitcoin has a relatively low correlation with other assets, it is more volatile, so its contribution to total risk is generally similar. The benefit of allocating to Bitcoin is that it can provide a diversified source of risk, while overweighting the "Big Seven U.S. Tech" will increase existing risks and lead to portfolio concentration. BlackRock Investment Institute believes that broader institutional investment in Bitcoin may suppress some of its volatility. While this may enable investors to increase the size of their allocations, it may also reduce Bitcoin's eye-popping returns since its inception. They wrote, "Looking ahead, if Bitcoin does achieve widespread adoption, investing in it may become less risky, but at that time, Bitcoin may no longer have a structural catalyst for further significant increases." (Reuters)