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BlackRock: Institutional investment in bitcoin may curb some volatility, but it will reduce the return on bitcoin investment

According to Reuters, BlackRock advises investors to invest no more than 2% of their total investment in Bitcoin. In response to a report released by BlackRock's Investment Institute, a broader institutional investment in Bitcoin may dampen some of its volatility. Although this may allow investors to increase the size of their allocations, it may also reduce the eye-popping returns of Bitcoin since its inception. Looking ahead, if Bitcoin does achieve widespread adoption, investing in it may become less risky, but at that point, Bitcoin may no longer have the structural catalyst for further significant gains.