BlackRock says Bitcoin belongs in portfolios, but only at 1% to 2%

BlackRock reiterated that Bitcoin can belong in diversified portfolios, but only as a small position of roughly 1% to 2%. The firm argues that this size can improve return potential while keeping portfolio risk within acceptable limits, whereas larger allocations could make Bitcoin a dominant source of volatility. BlackRock frames Bitcoin as a complementary diversifier rather than a core holding, citing its fixed supply, adoption-driven value proposition, and historically severe drawdowns of 70% to 80%. The commentary also aligns with BlackRock’s continued expansion of Bitcoin-related investment products, including its spot Bitcoin ETF and a new Bitcoin income ETF designed to generate yield through options. The article’s market message is cautious but supportive: institutional adoption is advancing, yet BlackRock is emphasizing risk management over aggressive allocation, which may temper expectations for large-scale portfolio rotation into BTC.