BlackRock said that the adoption of bitcoin and cryptocurrencies has outpaced that of the internet and mobile phones.
According to Tree News, BlackRock said allocating up to 2% of its portfolio to bitcoin is a reasonable range.
Markets expect the Fed to cut rates by 200 basis points by June next year. BlackRock said: "We think this is overdone and could trigger more drastic pricing changes as markets vacillate between very different potential outcomes."
BlackRock said bitcoin was an "emerging asset" that investors were using as a hedge against geopolitical uncertainty, according to a Bitcoin Archive post on the X platform.