Morning Minute | BlackRock Recommends 2% Bitcoin Allocation

TylerD's Market Summary

💰 BlackRock Says Buy Bitcoin for 2% of Your Portfolio

The bullish crypto headlines continue to pour in.

Yesterday it was Trump saying "We're gonna do something great with crypto" while the Trump family was actively buying ETH, LINK and AAVE.

And now it's a financial giant telling everyone to start buying Bitcoin for their portfolios.

What Happened?

BlackRock, the world’s largest asset manager, has recommended investors allocate 1-2% of their portfolio to Bitcoin.

Notably, they are one of the biggest Bitcoin buyers in the world for their IBIT (iShares Bitcoin Trust) ETF product, which has now accumulated $35B worth of Bitcoin.

Now they are telling investors they should be allocating too (within reason).

What Are They Saying:

• In the report, BlackRock says that "a reasonable range for Bitcoin exposure" is 1-2%
• BlackRock described Bitcoin as similar to investing in top tech stocks: “Over its short history, Bitcoin has seen both major surges and selloffs. This volatility, plus Bitcoin’s unique characteristics, raises the question of what role it should play in portfolios.”
• The asset manager noted that Bitcoin’s price is driven purely by adoption, without underlying cash flows, and warned that further widespread adoption could stabilize the asset but limit future price increases
• Notable holder and thought leader Fred Kreuger commented on BlackRock's allocation: "BlackRock explicitly says it thinks Bitcoin has similarities with the "Magnificent 7"...The Mag 7 opportunity is ongoing. Bitcoin is super interesting now, but maybe less in a decade. It's hard not reading this report and concluding Bitcoin is where the Mag 7 were a decade ago. And as a reminder, these stocks generally were up 10x, with NVDA and Tesla up much more. If I am an institutional portfolio manager, this report gives me the green light to take a minimum 2% allocation in Bitcoin."

Why It Matters?

Everyday American investors have been told crypto is a scam for a decade.

Now the biggest financial giant in the world is telling them they need 1-2% allocation to Bitcoin and comparing Bitcoin to the Mag 7.

That's a massive signal.

And Fred's insight is even more interesting, highlighting the path to a 10x from here.

The path to a 10x is an infinite TWAP (time-weighted-average purchasing) from 401ks around the world for the next decade (maybe coupled with some rich Nation States buying).

That TWAP is coming.

And BlackRock is telling investors to start now...

🚚 What is happening in NFTs?

Here is the list of other notable headlines from the day in NFTs:

• Ethereum led NFT trading volume with $37M on the day; Solana was next with $6.7M and then Bitcoin with $4.7M
• ETH NFT leaders were mixed after the major run up; Punks -2% at 38.5 ETH, Pudgy -3% at 26.5, BAYC -6% at 18.5 ETH, Azuki -2% at 8.9; Milady -3% at 5.8, Doodles -6% to 4
• The Onchain Heroes Genesis Rings minted out at 0.2 ETH and ran to 2.3 ETH at peak (now 2) with over 1,000 ETH volume
• Treeverse (+160%), Timeless (+134%) and V (+130%) led notable top movers
• BTC NFT leaders were mostly green; Bitcoin Puppets +8% at 0.17 BTC, NodeMonkes +8% at 0.15, OMB +8% at 0.15, Quantum Cats even at 0.2
• The Runes leaders were mostly red; DOG -6% at $905M mc, PUPS -9% at $228M, BDC even at $94M, GIZMO -3% at $34M
• Solana NFTs were very green led by DeGods (+25%), Claynosaurz (+28%) and Blinks GG (+30%)

💰 Token, Airdrop & Protocol Tracker

Here's a rundown of major token, protocol and airdrop news from the day:

🌎 Macro Crypto and Web3

A few other Crypto and Web3 headlines that caught my eye:

• Crypto majors are slightly red this morning; BTC -0.3% at $100,400, ETH even at $3,920, SOL -2% at $226, XRP -2% at $2.38; HBAR, CORE, OP & LDO led alts up 6-10%
• The ETH ETFs have seen $2B in net inflows over the last 10 sessions
• Memecoin majors are also red; DOGE -2% at $0.407, SHIBA -2%, PEPE -4%, WIF -4%, BONK -1%, MOG +1%
• Donald Trump said "We're gonna do something great with crypto" after ringing the NYSE bell on Thursday
• BlackRock is now recommending a 2% allocation to Bitcoin in investment portfolios 
• The State of Texas has introduced a new bill aiming to establish a Bitcoin strategic reserve
• Solana has beat Ethereum in the number of new developers in 2024
• The Chillguy artist's X page was compromised and a series of statements posted which drove major volatily in CHILLGUY price action, now settling at $330M

🚀 Memecoin Movers 

• $GWART (+12,000% to $12M market cap, SOL)
• $DT (+11,000% to $27M market cap, SOL)
• $LINDA (+4,000% to $10M market cap, SOL)
• $MIZUKI (+2,300% to $16M market cap, SOL)
• $blink (+170% to $32M market cap, SOL)

📈 NFT Floor Price Increase (ETH)

• Sad Times (160%, 0.19 ETH Floor)
• Timeless (133%, 0.21 ETH Floor)
• Emby (130%, 0.15 ETH)
• Cambria Founders (122%, 0.68 ETH)
• V (110%, 1.43 ETH)

🗓 Upcoming Mints and Events

Folks - my source for daily mints and events has shut down operations.

Given the general lack of interest in new mints on a daily basis, I'll be discontinuing this section of the newsletter, at least for now.

If I can find a good source for daily events, I will look at turning it back on.

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