BlackRock Integrates IBIT Bitcoin ETF Into Model Portfolio
Global asset management giant BlackRock has incorporated the iShares Bitcoin Trust (IBIT) into one of its model portfolios, marking a significant step toward broader institutional acceptance of bitcoin (BTC) as an asset class.
These model portfolios serve as strategic guides for advisors and investment platforms, helping them allocate funds based on risk tolerance and investment goals. While advisors have the flexibility to adjust allocations, BlackRock’s inclusion of IBIT signals growing confidence in bitcoin’s long-term potential.
According to Bloomberg Intelligence ETF analyst James Seyffart, BlackRock allocated between 1% and 2% of its target allocation portfolio—which accommodates alternative assets—to IBIT.
Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF models, highlighted bitcoin’s unique investment case in a report released Thursday. Gates cited bitcoin’s role as a potential store of value, a hedge against U.S. dollar dominance and geopolitical instability, and an asset benefiting from the increasing digitization of commerce.
“These characteristics offer potential diversification benefits and additional sources of return for multi-asset portfolios,” Gates wrote.
While IBIT’s inclusion is in a smaller model portfolio, its significance lies in BlackRock’s willingness to embrace bitcoin within its investment frameworks.
“This is a major development because it’s the first time BlackRock has incorporated bitcoin into one of its models,” said Seyffart. “It may not be the last, but given bitcoin’s polarizing nature, it’s uncertain if or when IBIT might be added to BlackRock’s primary portfolios, which hold significantly more assets.”
As of December 31, 2024, BlackRock’s model portfolios collectively manage approximately $150 billion in assets.
