BlackRock Recommends Best Bitcoin Allocation for Balanced Portfolios

• Robert Mitchnick has publicly recommended that investors consider allocating up to 2% of their portfolios to Bitcoin.
• This guidance is the culmination of multiple years of in-depth analysis and research carried out by BlackRock’s digital assets team.

BlackRock, the world’s largest asset manager with over $11 trillion in assets under management, is known for its conservative, research-driven approach. So when it dips its toes deeper into crypto, and recommends investors allocate 1–2% of their portfolios to Bitcoin, it gets people talking.

At the Bitcoin 2025 conference in Las Vegas, Robert Mitchnick, who leads the digital assets division at BlackRock, doubled down on the firm’s guidance for a 1–2% Bitcoin allocation. That suggestion first showed up in their internal model portfolios back in December 2024, but Mitchnick made it clear: this wasn’t some knee-jerk reaction to crypto hype. “It was the result of multiple years of analysis and research,” he said.

Mitchnick explained that Bitcoin has increasingly shown potential to act as a hedge in uncertain times. While he acknowledged the cryptocurrency’s volatility, he also compared its long-term behavior to that of gold. In periods of macroeconomic instability, whether due to inflation, central bank policies, or global conflicts, Bitcoin’s decentralized nature can offer investors something traditional assets might not: an alternative store of value.

With a capped supply of 21 million coins and low correlation to traditional asset classes, Bitcoin brings unique qualities to the table. According to BlackRock, these traits make it a “unique diversifier” that can enhance portfolio construction, though they’re quick to note that its volatility still adds outsized risk.

Why This Matters: Coming From BlackRock

It’s important to recognize that BlackRock is a financial institution trusted by governments and Fortune 500 companies around the world. Its push to integrate Bitcoin into mainstream investment portfolios signals a significant shift in how institutions view digital assets.

BlackRock’s iShares Bitcoin Trust (IBIT) was among 11 spot Bitcoin ETFs approved by the SEC in January 2024. The trust has been one of the standout performers among crypto exchange-traded Funds (ETFs), seeing growth and major inflows.

And it’s not just BlackRock. Jack Dorsey’s Block Inc. announced it will begin enabling Bitcoin payments across 4 million Square merchants by 2026, starting with a 2025 rollout. CNF reported that customers will be able to pay using Bitcoin via QR code, with the option for merchants to receive BTC directly or convert it instantly to fiat, pending regulatory approval.

Meanwhile, Bitcoin is being embraced in other sectors too. Scotland’s Lomond School has begun accepting Bitcoin for tuition, and Roxom Global recently raised $17.9 million to grow its Bitcoin-denominated securities platform. They also announced RoxomTV, which aims to be the first 24/7 global Bitcoin-native media network.

So far in 2025, Bitcoin has had a wild ride. It climbed from $93,000 to over $109,000, then dipped below $80,000, only to rebound back to $108,725. These swings reflect the interest and belief of both retail and institutional investors.

Some analysts believe the ride is far from over. Notably, crypto analyst Master Ananda has forecasted a new all-time high target for Bitcoin at $155,601.73. The open interest for Bitcoin options has also increased by 2.33%, with a value of $49.01 billion. On the other hand, the volume of Bitcoin options traded has increased significantly by 46.34%, reaching $5.25 billion.

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