The world’s biggest asset manager — $11.5 trillion big — just gave Bitcoin its Wall Street moment, calling the OG crypto a must-have investment.
BlackRock says a 2% Bitcoin allocation is now essential for a balanced portfolio, the first time it’s put a number on its recommendation.
The call comes as Bitcoin zooms past $100K on the heels of Donald Trump’s election victory — and promise of crypto-friendly government.
When Blackrock checks in
BlackRock is at the epicenter of the crypto narrative. When it first pushed into crypto in mid-2023 by applying to have its own Bitcoin ETF, the price of Bitcoin went from around $25K to $45K within months.
When it won approval, along with 10 other firms, the price hit a record $73K within weeks.
Fast forward to now: $50 billion is already parked in BlackRock’s Bitcoin ETF — just a crumb at 0.4% of their total assets, but enough to make waves. Because it’s BlackRock.
Some have even said BlackRock’s plunge into crypto matters more than the US elections and Trump’s win. Hot take? Maybe not.
Magnificent Seven = Bitcoin
BlackRock’s pitch is clear: Bitcoin belongs in portfolios but keep it chill. It has flagged the OG crypto’s volatility and emphasized risk-budgeting within a “reasonable range”.
It is asking us to think of Bitcoin as the chaotic cousin to the Mag 7 stocks — Apple, Tesla, and their ilk. Risky, but rewarding. Anything over 2%, and you’re testing your risk appetite.
Crypto evangelist Mike Novogratz summed it up best on X: BlackRock “now sees $BTC alongside tech giants like Apple and Tesla. Institutions are here.”
Translation? Bitcoin’s no longer a fringe player; it’s playing varsity with the heavy hitters.
The gameplan
Since BlackRock’s nod, Bitcoin has held steady in $100k territory. No big leaps, but maybe that’s because the market’s already priced in the hype.
But what happens when Trump’s promised crypto regulations finally land? BlackRock’s endorsement may just be the tipping point for the next stage in Bitcoin’s evolution.
The big players are officially all-in, and the game will never be the same.
