BlackRock’s iShares Bitcoin Trust ETF has been a roaring success, smashing records and now managing $53.8 billion in assets. 

But the world’s biggest asset manager still has a conservative view of the cryptocurrency—and recommends that investors who want to invest in Bitcoin should only put a maximum of 2% of the orange coin in their portfolio. 

In a Thursday report, the Wall Street titan said that putting Bitcoin in a portfolio was like investing in top tech stocks: potentially beneficial, but also risky.

“Over its short history, Bitcoin has seen both major surges and selloffs,” the report notes. “This volatility, plus Bitcoin’s unique characteristics, raises the question of what role it should play in portfolios.”

It added that “a reasonable range for Bitcoin exposure” was 1-2% of a portfolio’s total value. It added that the asset was still risky, and with no underlying cash flows, adoption was the only thing driving its price.

The report—authored by Samara Cohen, Paul Henderson, Robert Mitchnick, and Vivek Paul—noted that more adoption in the future could lead Bitcoin to be less risky. But if this were to happen, it could “no longer have a st

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Author: Mathew Di Salvo