Asset Manager Blackrock has recommended a 2% allocation into bitcoin (BTC). The announcement marks a significant milestone in the crypto asset’s journey toward mainstream acceptance.
According to a recent report on X, the world has approximately $900 trillion in assets. If BTC captured 2% of it, it would result in a market capitalization of roughly $18 trillion, translating to around $900,000 per coin.
While investing in the crypto asset, BlackRock also highlights bitcoin’s potential as a hedge against inflation and a store of value. The world’s largest asset manager has long been investing in BTC, increasing its portfolio.
Over $429.5M in BTC Purchase
Recall that BlackRock, with over $11.5 trillion in assets under management (AUM), acquired 4295 BTC worth $429.5 million. The investment reflects a deliberate strategy by the management giant. The asset manager signals its confidence in the long-term growth of the crypto asset.
Amid the adoption season, several asset managers like Fidelity Investments are focused on investing significantly in crypto assets. As such, both institutional and retail investors are smiling at their profits. For instance, the asset manager recently acquired 1205 BTC, valued at over $121.5 million, in its Bitcoin portfolio.
This is not the only purchase the asset giant has made over the week. It also added approximately 5200 BTC, worth more than $524.6 million. At the time, Fidelity held a total of 199,237 BTC, valued at roughly $19.3 billion.
Meanwhile, BTC is currently trading at over $101,100, down from its all-time high of over $103,000 last week.
5,117 BTC Bagged
In line with the adoption of BTC, other corporations have also begun investing in digital assets. On December 13, 2024, North American Bitcoin mining firm Riot acquired an additional 5,117 BTC. The company spread its latest purchase over three days, from December 10 to December 12, 2024, to obtain the crypto at varied prices due to the volatile nature of the market.
Despite being a miner and holding its mining rewards, Riot has taken steps to increase its stash by acquiring BTC from the open market. The firm spent roughly $510 million to acquire its latest bitcoins at an average price of $99,669 per coin, including trading fees and expenses.
Recently, MicroStrategy has also acquired a significant amount of the digital asset. The company noted it purchased 21,550 BTC for approximately $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion.
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