BlackRock on Bitcoin: 2% allocation reasonable for portfolios
BlackRock has recommended a Bitcoin allocation size for the first time, likening the digital asset
According to a new BlackRock report, allocating 1-2% of a multi-asset portfolio to Bitcoin Bitcoin
-0.65%
Bitcoin represents a “reasonable range,” as spot BTC exchange-traded funds have amassed $113 billion in assets under management.
The $11.5 trillion asset manager envisions an ideal portfolio split 60-40 between stocks and bonds. BlackRock suggests padding the stock segment with Alphabet (Google), Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla—referred to as the Magnificent 7—while maintaining the same risk weight as a 2% BTC allocation.
“Why not more? Going beyond that would sharply increase Bitcoin’s share of the overall portfolio risk,” per the world’s largest wealth manager and spot BTC ETF issuer.
This marks the first time BlackRock has explicitly specified how much investors should allocate to BTC. Bloomberg’s Eric Balchunas noted that the report likely addresses frequent “how much?” inquiries. As of December 12, BlackRock’s IBIT dominated the spot BTC ETF market, managing $53.8 billion in investments.
