BlackRock Recommends Up to 2% Bitcoin Allocation for Portfolios
We’ve heard the “increased adoption” answer frequently when industry players discuss 2025 crypto market expectations.
Big players are increasingly interested in Bitcoin (BTC). Many believe that anticipated regulatory clarity will aid this shift.
Bitcoin adoption varies among investors. BlackRock’s recent guidance suggests a potential buying wave.
In December, BlackRock executives stated that the so-called Magnificent 7 tech stocks represent a similar portfolio risk as a 1-2% BTC allocation. They described this as a reasonable range for Bitcoin exposure.
Galaxy CEO Mike Novogratz remarked on Twitter that BlackRock's recommendation for up to a 2% Bitcoin allocation is significant, indicating institutional interest alongside major tech companies.
Bitwise CIO Matt Hougan noted that many overlooked BlackRock’s suggestion to add Bitcoin to portfolios, humorously pointing out how allocations doubled from the common 1% to 2%.
A March survey indicated that 15% of financial advisers recommended a 1% Bitcoin allocation, while 23% planning to allocate expected to start with that amount. Bitwise clients often choose a 5% allocation, which would have been laughed at a year ago.
Hougan emphasized that BlackRock's guidance reflects a base rate for portfolios across exposures, suggesting this is only the beginning.
While U.S. Bitcoin ETFs have facilitated wealth managers' entry into crypto, many institutions remain cautious. However, interest is growing from companies, governments, and pension funds. Hougan anticipates that if Bitcoin volatility decreases in the coming years, BlackRock may support a 5% allocation.
BlackRock noted that broader adoption could stabilize Bitcoin's low correlation with equities, reducing its portfolio risk contribution and allowing for increased investment. However, they cautioned that widespread adoption might diminish Bitcoin's potential for substantial price increases, making its role more tactical, akin to gold.