BlackRock Advises 1%–2% Bitcoin Allocation for Portfolios

Overview

• BlackRock published formal guidance on Wednesday that investors should size Bitcoin at roughly 1% to 2% of multi-asset portfolios and adjust exposure as volatility, liquidity and macro conditions change.
• The firm warned that allocations above 2% can introduce disproportionate swings that may be unsuitable for conservative or balanced investors.
• BlackRock is broadening its regulated ETF lineup to meet different needs, including the recently launched iShares Bitcoin Premium Income ETF, which uses covered calls to target a monthly income distribution.
• Its flagship spot Bitcoin fund has seen renewed redemptions, including a recent single-day outflow of roughly $172 million, even as the fund still holds tens of billions in assets.
• Executives say a shift of institutional capital toward AI-related opportunities has reduced short-term demand for Bitcoin, though they point to U.S. fiscal and rate dynamics as the key longer-term drivers that could revive interest.