IBIT Bitcoin ETF Now Included in BlackRock’s Alternative Investment Strategy

BlackRock Allocates Bitcoin ETF in Model Portfolio for Alternative Assets

BlackRock, the world’s largest asset manager, has included its iShares Bitcoin Trust (IBIT) in one of its model portfolios, marking a major institutional step toward bitcoin integration.

The firm’s model portfolios provide investment frameworks that financial advisors and platforms can adopt or adjust based on their specific strategies. According to Bloomberg Intelligence ETF analyst James Seyffart, BlackRock has allocated between 1% and 2% of its target allocation portfolio—designed for alternative assets—to IBIT.

Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF models, detailed the reasoning behind the move in a report released Thursday. He cited bitcoin’s potential as a hedge against macroeconomic instability, its role as a digital store of value, and its ability to provide diversification in multi-asset portfolios.

“Bitcoin presents a compelling investment case as an alternative monetary asset, offering potential downside protection against inflation and political risk,” Gates stated.

This marks the first time BlackRock has included IBIT in any of its model portfolios, a decision that could pave the way for broader institutional adoption.

“This is a noteworthy milestone,” said Seyffart. “While this is just one of their smaller models, it signals a growing recognition of bitcoin’s legitimacy in traditional finance. It will be interesting to see if BlackRock eventually integrates IBIT into its primary models with significantly larger asset flows.”

As of December 31, 2024, BlackRock’s model portfolios collectively manage approximately $150 billion in assets.