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BlackRock has advised investors to consider a small Bitcoin allocation within diversified portfolios, suggesting that a 1% to 2% position could improve return potential without dominating portfolio risk. The guidance was provided by Michael Gates, BlackRock’s lead portfolio manager for model portfolios.
Gates described Bitcoin as a “complementary diversifier” within multi-asset portfolios. He said a modest allocation could affect returns without driving daily portfolio risk. BlackRock based the recommendation on diversification principles rather than short-term market forecasts.
The firm said Bitcoin’s role in portfolios is evolving and that it could be considered a complementary diversifier. BlackRock stated that a modest allocation (typically around 1–2%) could impact return potential while maintaining appropriate risk tolerance.
BlackRock said a 1% to 2% Bitcoin allocation carries risk similar to a large technology stock. The firm also pointed to Bitcoin’s low correlation with stocks and bonds, adding that the allocation can support risk-adjusted returns within traditional portfolios.
BlackRock explained the recommendation using a standard 60/40 portfolio framework, saying the allocation remains limited while still offering portfolio exposure.
Gates said: “A modest allocation could potentially have an impact on portfolio returns without dominating day-to-day risk.”
The crypto bear market remained in force on Wednesday, with bitcoin slipping back toward the $60,000 area. Sharp pullbacks in gold and oil also weighed on the 2025 “debasement trade,” which had supported hard assets amid concerns about government debt and fiat currencies. Meanwhile, tech—particularly the AI boom—continued…
