Bitcoin Belongs In An 'Ideal' Portfolio, Says BlackRock Executive, But Thinks A 5% Allocation Is High - BlackRock (NYSE:BLK)

Group 1 - Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, advocates for an investment portfolio that includes hard assets like gold and Bitcoin as a hedge against currency depreciation [1][2] - Rieder suggests that a Bitcoin allocation of 5% seems "high," while BlackRock previously recommended a range of 1-2% for Bitcoin in multi-asset portfolios [2][4] - BlackRock's exposure to gold is between 3 to 5%, and Rieder considers gold a better currency hedge compared to Bitcoin, which has shown a correlation with the Nasdaq [3][4] Group 2 - Bitcoin has been marketed as an inflation hedge but has behaved more like a risk-on asset, particularly vulnerable to macroeconomic shocks [5] - A report by Franklin Templeton indicates that Bitcoin's price correlation with the Nasdaq has increased significantly over the past three years, while no significant correlation with gold was found [6]