Yigit Taha OZTURK 
The world’s largest asset manager, BlackRock, stated that a portfolio allocation of up to 2% is “reasonable” for investors who wish to hold Bitcoin (BTC). This was outlined in a report released on December 12.
The report, shared with Cointelegraph and initially reported by Bloomberg, suggests that a 1-2% allocation is “a reasonable range for Bitcoin exposure,” but also warns that larger allocations “would sharply increase Bitcoin’s share of the overall portfolio risk.” BlackRock explained that a 1-2% BTC allocation poses “on average, about the same share of overall portfolio risk” as a typical allocation to the “Magnificent 7” group of mostly mega-cap tech stocks, such as Amazon, Microsoft, and Nvidia, in a portfolio consisting of 60% stocks and 40% fixed income assets.
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BlackRock, which manages about $11.5 trillion in assets, also sponsors the largest spot BTC exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), which holds nearly $54 billion in net assets.
Bitcoin’s Unique Return Profile According to BlackRock, investors need to view Bitcoin‘s expected returns in a different way: It has no underlying cash flows for estimating future returns. What matters most is the extent of its adoption. Bitcoin may also offer a more diversified source of return, as its value is driven by distinct factors, unlike major risk assets. Over the long term, Bitcoin could potentially become less risky, but this might eliminate the structural catalysts for significant price increases. At that point, investors may prefer to use it tactically to hedge against specific risks, much like gold.
The report, titled “Sizing Bitcoin in Portfolios”, was released by the BlackRock Investment Institute on December 12.
Price Catalysts Spot BTC ETFs, launched in January, emerged as 2024’s most popular investment vehicles, surpassing $100 billion in net assets in November. This surge in inflows from institutional investors could lead to “demand shocks” in 2025, potentially driving up Bitcoin‘s spot price.
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