Larry Fink: ‘Bitcoin shouldn’t be a large portion of your portfolio’ as BlackRock ETF drops to $90bn

Core Viewpoint - BlackRock CEO Larry Fink acknowledges Bitcoin's role in investor portfolios but advises against making it a large component, likening it to gold as an alternative asset for diversification [1][2]. Group 1: Bitcoin's Position in Investment Portfolios - Fink suggests Bitcoin can serve as a diversification tool, similar to gold, but should not dominate investment portfolios [1][2]. - The traditional 60/40 portfolio model (60% stocks, 40% bonds) has been the norm for decades, but recent market changes have led institutional investors to seek alternative assets like Bitcoin for diversification [2][3]. Group 2: Performance of BlackRock's Bitcoin ETF - BlackRock's Bitcoin ETF, IBIT, has achieved significant success, amassing over $90 billion in assets under management within two years of its launch [4]. - IBIT led ETF flows last week, attracting $3.5 billion, which accounted for approximately 10% of all net flows into ETFs, outperforming established S&P 500 trackers [4]. Group 3: Market Dynamics and Other Perspectives - Despite the success of BlackRock's ETF, the $90 billion figure represents a decline from $98 billion due to a recent drop in Bitcoin's value amid a $19 billion leverage crash [5]. - Other financial experts, like Ric Edelman, have suggested higher allocations to digital assets, recommending 10% for conservative investors and up to 40% for aggressive investors [6][7].