BlackRock Adds Bitcoin ETF to Its Model Portfolio – Here’s What You Need to Know!

Updated

March 3, 2025

Gambar BlackRock Adds Bitcoin ETF to Its Model Portfolio – Here’s What You Need to Know!

Jakarta, Pintu News – According to a Bloomberg report, the world’s largest asset manager, BlackRock, recently announced the addition of Bitcoin (BTC) to its $150 billion model portfolio framework.

The move marks an important shift in their investment strategy, with an allocation of 1% to 2% to the iShares Bitcoin Trust ETF (IBIT).

BlackRock Adopts Bitcoin

BlackRock has incorporated Bitcoin into its investment strategy by allocating a small portion of its model portfolio to IBIT. The model portfolio designed by BlackRock aims to provide financial advisors with a structured investment strategy.

The allocation to IBIT is set between 1% and 2%, which is seen by BlackRock as a reasonable range to balance risk and diversification. According to the company, Bitcoin (BTC) offers long-term investment potential as well as diversification benefits for portfolios.

Bitcoin ETF Inflow and Outflow Trends

blackrock bitcoin etf — Source: Viska Digital

Despite IBIT’s strong launch in early 2024, inflows into Bitcoin (BTC) ETFs have slowed in recent weeks.

Investors have withdrawn around $900 million from Bitcoin (BTC) ETFs over the past week, after a period of high demand where IBIT recorded a record inflow of $37 billion last year.

According to a report by CoinGape, these outflows could trigger further downward pressure on Bitcoin (BTC) price and the crypto market as a whole. With institutional investors reducing their exposure, Bitcoin (BTC) price may struggle to return to key support levels.

Bitcoin Price Volatility and Market Outlook

At the end of February 2025, Bitcoin (BTC) experienced significant price fluctuations. The cryptocurrency was trading around $84,000, down from almost $110,000 last month. Market conditions, economic concerns, and global trade tensions have contributed to this decline.

BlackRock’s decision to limit Bitcoin (BTC) ETF exposure to a maximum of 2% is in line with their risk assessment. This cautious approach suggests that BlackRock is positioning Bitcoin (BTC) as an alternative asset rather than a core holding.

Overall, with this strategic move by BlackRock, institutional exposure to Bitcoin (BTC) may increase, depending on demand from financial advisors and investors.

Despite facing recent volatility and fund withdrawals, BlackRock’s belief in the role of Bitcoin (BTC) in a diversified portfolio remains strong. This change reflects the company’s broader market strategy in response to economic conditions and investor sentiment.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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