Up To 2% Of Bitcoin: BlackRock Shakes Up Its Investment Portfolios

As Bitcoin ETFs face a series of capital outflows, BlackRock takes a counterintuitive approach by incorporating its BTC ETF, the iShares Bitcoin Trust (IBIT), into its model portfolios. A first for the asset management giant, which could indeed provoke a domino effect among its competitors. But what is this strategy really hiding?

A Measured but Symbolic Breakthrough on Bitcoin ETFs

BlackRock, which manages over $10 trillion in assets, did not choose Bitcoin by chance . Its IBIT model, weighing in at $48 billion and holding nearly 576,046 BTC, is now entering its model portfolios, with an allocation of 1 to 2% . 

While this share may seem modest, it sends a strong signal to the market.

• BlackRock manages about $150 billion in model portfolios;
• IBIT represents 2.9% of the entire Bitcoin in circulation;
• BlackRock’s BTC ETF is already one of the largest in the sector;
• The IBIT allocation fits into targeted alternative strategies.

According to James Seyffart, an ETF analyst at Bloomberg Intelligence, this decision could encourage other asset managers to follow suit. But the real question is: Will IBIT ever become part of BlackRock’s main models? Some see it as a revolution, others as a simple experiment. And you?

BlackRock: A Strategic Game of Chess in the Crypto Market

BlackRock’s initiative does not solely rely on the speculative appeal of BTC. Michael Gates, head of allocation models at BlackRock, justifies this decision by presenting several arguments in favor of Bitcoin: its scarcity, its status as a store of value, and its role as a hedge against dollar hegemony.

“Collectively, these characteristics can provide unique and additive sources of diversification “, he writes in a note .

Moreover, the context favors the asset manager. Despite the recent drop in the BTC price to $79,000, regulations are easing and institutional interest in cryptos remains strong. Some analysts even believe that this decision could strengthen Bitcoin’s adoption within major investment funds.

However, not everything is so simple. As Keegan, a decentralized finance specialist, points out:

“If realized, the flows may not shift the needle immediately, but the signal of risk reduction sent to other model managers, with over $5 trillion under management, is crucial.”

Is BlackRock initiating a normalization of Bitcoin in institutional allocations?

In short, it is not surprising that Michael Saylor is concerned about BlackRock’s rise in the crypto sphere. The CEO of MicroStrategy does not hide his apprehension about the giant’s appetite and encourages investors not to yield their BTC to this financial behemoth. But it must be kept in mind that BlackRock is not limited to BTC and ETH ETFs: it also offers a Bitcoin ETP in Europe , thus expanding its influence on the global crypto market. Is a revolution underway?