BlackRock, the world’s largest asset management company managing $11.5 trillion in assets, has recently decided to add its Bitcoin spot ETF to its model portfolio products, which total $150 billion. This move allows the investment portfolio to allocate 1% to 2% of its funds to BlackRock’s own Bitcoin spot ETF, “IBIT,” potentially creating new demand for the ETF.
(Background Summary: BlackRock CEO: Bitcoin is a hedge asset against global pessimism, with institutional investment accelerating towards $700,000)
(Background Context: BlackRock’s historically successful ETF issuance: IBIT raised $50 billion, Bitcoin challenges gold status in 2025)
According to Bloomberg, BlackRock’s investment outlook indicates that the company is allowing the addition of its Bitcoin spot ETF to its model portfolio products, which total $150 billion. The portfolio can allocate 1% to 2% of funds to its own Bitcoin spot ETF, valued at $48 billion, “IBIT.”
Although this constitutes only a small portion of BlackRock’s overall model portfolio business, this initiative opens a potential new demand channel for IBIT amid a sluggish cryptocurrency market. The model portfolios package various types of investments into ready-made strategies for sale to financial advisors, a trend that has developed rapidly in recent years, with adjustments in holdings potentially leading to significant inflows or outflows of funds.
Michael Gates, Chief Portfolio Manager of BlackRock’s Target Allocation ETF Model Portfolios, stated:
“We believe Bitcoin has long-term investment value and could provide a unique source to help diversify risk within the portfolio.”
The high volatility of Bitcoin is the core reason BlackRock has set its investment weight between 1% and 2%. In a report from December 2023, BlackRock’s investment research division noted that exceeding a 2% allocation would significantly increase Bitcoin’s risk proportion within the overall investment portfolio.
IBIT is expected to attract more demand.
Launched in January 2024, IBIT has become one of the most successful ETFs in history, attracting over $37 billion in inflows last year. Despite recent cooling in market demand and a net outflow of $900 million in the past week, BlackRock noted that financial advisors still show strong demand for Bitcoin allocation within the model portfolios.
Eve Cout, Head of Portfolio Design and Solutions for BlackRock’s U.S. Wealth Management, pointed out that investors generally wish to increase their allocation to alternative assets, but they need guidance on how to determine scale, expand investments, and rebalance.
