Skip to navigationSkip to main contentSkip to right columnGiuseppe CiccomascoloWed, June 24, 2026 at 3:32 PM GMT+2 4 min readBlackRock recommends a 1%-2% Bitcoin allocation, highlighting BTC's growing role in diversified institutional portfolios. | Credit: CCN.comKey TakeawaysBlackRock recommends a 1%-2% Bitcoin allocation for investors seeking diversification and long-term return potential within traditional portfolios.The asset manager views Bitcoin as a complementary diversifier, citing its decentralized structure and relatively low long-term correlation with traditional assets.The move could accelerate advisor adoption of Bitcoin exposure, providing wealth managers with a formal framework for discussing crypto allocations with clients.BlackRock, the world's largest asset manager, has formally recommended that investors consider allocating 1% to 2% of their portfolios to Bitcoin, marking another milestone in the cryptocurrency's growing acceptance among institutional investors.The guidance comes through a new research note from the BlackRock Investment Institute (BII), titled Sizing Bitcoin in Portfolios, which frames Bitcoin as a complementary diversifier rather than a core portfolio holding.According to BlackRock, a modest allocation can potentially enhance diversification and improve risk-adjusted returns while remaining within the risk parameters that many traditional investors already accept.The recommendation carries significant weight given BlackRock's position at the center of the growing Bitcoin ETF market.Its iShares Bitcoin Trust (IBIT) currently manages approximately $62 billion in assets and accounts for nearly half of all US spot Bitcoin ETF assets, making it the dominant vehicle for institutional Bitcoin exposure.Rather than encouraging aggressive cryptocurrency exposure, BlackRock's framework focuses on portfolio construction and risk budgeting.The firm's researchers argue that Bitcoin's decentralized nature, fixed supply, and distinct risk-return profile make it different from traditional asset classes such as equities, bonds, and commodities.Although Bitcoin remains volatile, BlackRock notes that its long-term correlation with traditional assets has historically remained relatively low, allowing it to serve as a potential diversification tool.Under BlackRock's model, a 1% Bitcoin allocation contributes roughly 2% of a standard portfolio's overall risk. A 2% allocation increases that contribution to around 5%, which the firm compares to the risk associated with holding a single member of the "Magnificent Seven" group of large-cap technology stocks.However, BlackRock warns that allocations beyond 2% can dramatically increase portfolio risk.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info