BlackRock adds Bitcoin ETF into model portfolios with a 1%-2% allocation

Key Takeaways

BlackRock has added the iShares Bitcoin Trust ETF to its model portfolios with a 1%-2% allocation.
Bitcoin is seen as a diversification tool amid BlackRock’s broader portfolio strategy changes.

BlackRock has incorporated the iShares Bitcoin Trust ETF (IBIT) into its model portfolios, allocating between 1% and 2%, as Bloomberg reported today.

This move comes as the world’s largest asset manager adjusts its investment strategy, which includes reducing equity overweight positions and exposure to long-duration bonds.

Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF model portfolio suite, highlighted Bitcoin’s role as a diversification tool.

Despite recent market fluctuations, BlackRock maintains its strategic view on Bitcoin, with the firm overseeing more than $11 trillion in assets.

IBIT, launched in January 2024, has attracted over $37 billion in inflows, although it saw $900 million in outflows last week.

By November 2024, BlackRock’s iShares Bitcoin Trust reached a significant milestone by amassing $40 billion in assets in just 211 days, becoming one of the largest ETFs.

The crypto market has been pressured by economic concerns and trade tensions, dampening risk appetite.

Bitcoin is currently trading at $84,500, following a 7% dip to $78,200 overnight.