Bitcoin has established a beachhead in traditional mutual fund portfolios. It’s small and likely to remain so for a while because it’s volatile, not like any other asset class. Even the cryptocurrency pioneers are tiptoeing into it, and not always just to capture its wild, eye-catching gains. Bitcoin’s off-the-charts volatility, covered in this article by Morningstar portfolio strategist Amy Arnott, makes it more likely to appear as a small part of some equity or alternatives funds. It’s unlikely to spread widely in fixed-income strategies: The data from Arnott’s piece notes that bitcoin has been 24 times as volatile as the Bloomberg Barclays U.S. Aggregate Bond Index over the past three years.
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Meet the 30 Private & Public Companies with Bitcoin Reserves Totaling Over $55 Billion
BitGo, the leading digital asset financial services company, issued a blog post discussing 30 private and public companies that are the first movers to add Bitcoin to their balance sheet or portfolios.
Bitcoin has attained newfound ubiquity over the past year, with prominent figures ranging from Bridgewater s Ray Dallio to Tesla s Elon Musk acknowledging the viability and utility of the asset class. Often referred to as ‘digital gold, Bitcoin is supported by a resilient, peer-to-peer global ledger called a blockchain. Like gold before it, Bitcoin is perceived to be a hedge against rising inflation of the dollar and other global fiat currencies. Bitcoin s popularity and adoption as a reserve asset has further increased over the past year due to the fallout from the Covid-19 pandemic and subsequent monetary expansion.
The world’s largest asset manager is also seeking a head of blockchain investments.
BlackRock has indicated it is delving into the cryptocurrency business based on recent US Securities and Exchange Commission (SEC) filings in which the world’s largest asset manager has applied to include Bitcoin futures in two of its funds.
According to the filings, BlackRock is looking to add the Bitcoin investments to the BlackRock Global Allocation Fund and the BlackRock Strategic Income Opportunities Fund. The firm says in both filings that the funds “may engage in futures contracts based on Bitcoin” and that “the only Bitcoin futures in which the funds may invest are cash-settled Bitcoin futures traded on commodity exchanges registered with the CFTC [Commodity Futures Trading Commission].”