BlackRock Adds Bitcoin ETF to Alternative Investment Model Portfolio
BlackRock, the world’s largest asset manager, has incorporated its iShares Bitcoin Trust (IBIT) into one of its model portfolios, signaling a growing acceptance of bitcoin in traditional investment strategies.
These model portfolios act as suggested allocations for financial advisors and investment platforms, which can either follow them as designed or make adjustments based on client needs. Bloomberg Intelligence ETF analyst James Seyffart noted that BlackRock allocated between 1% and 2% of its alternative asset portfolio to IBIT.
Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF models, explained the decision in a report on Thursday, highlighting bitcoin’s role as a store of value, a hedge against political and economic instability, and a diversification tool in multi-asset portfolios.
“Bitcoin offers a unique investment case, serving as both an alternative monetary asset and a potential buffer against dollar depreciation and geopolitical risks,” Gates wrote.
Although this allocation represents a small portion of BlackRock’s broader portfolio strategy, it is a significant step.
“This is the first time BlackRock has included IBIT in any of its models, which is a big deal,” Seyffart commented. “While this is one of their smaller models, it could pave the way for more widespread adoption within the firm’s investment frameworks.”
As of December 31, 2024, BlackRock’s model portfolios collectively manage approximately $150 billion in assets.
