While financial giants have traditionally shied away from cryptocurrency, BlackRock is changing the game. The world’s largest asset manager just added a 1-2% Bitcoin allocation to its massive $150 billion model portfolio. Not exactly going all-in, but hey—it’s BlackRock. They’re using their own iShares Bitcoin Trust ETF (IBIT) for the exposure. Smart move. Keep it in the family.
The cautious allocation makes sense. Bitcoin isn’t exactly known for its stability. One day you’re up 10%, the next you’re wondering where your money went. BlackRock calls the 1-2% allocation a “reasonable range.” Anything higher might turn their steady portfolios into rollercoaster rides. Research published in December indicated that exceeding a 2% allocation threshold significantly increases crypto-related risk. No thanks.
Why bother at all? BlackRock sees Bitcoin as a legitimate long-term investment with unique diversification benefits. This perspective marks a dramatic shift from CEO Larry Fink’s previous stance when he dismissed Bitcoin as merely a money laundering tool. Clients want crypto exposure without diving headfirst into the deep end. This gives them a toe in the water.
The IBIT ETF launched in January 2024 and has been a certified hit. It’s attracted over $37 billion in inflows this year alone and now holds more than $48 billion in assets. Not too shabby.
Though it did see some outflows in late February 2025, including a $418 million exit on February 26. Investors taking profits? Probably.
This move signals a major shift in institutional thinking. When BlackRock does something, others follow. Financial advisors use these model portfolios as blueprints for client investments. Billions will likely flow into Bitcoin as a result.
BlackRock isn’t stopping here. They’re exploring a Bitcoin ETP in Europe and have doubled Bitcoin exposure in their Global Allocation Fund. The crypto curious now have Wall Street’s blessing. Unlike futures-based products, these funds hold actual Bitcoin in secure vaults while trading like traditional stocks on exchanges.
For traditional finance, this is like your grandparents getting TikTok accounts. Surprising, a bit awkward, but ultimately a sign of changing times. Bitcoin has officially entered the establishment. Love it or hate it, crypto isn’t going anywhere.
