BlackRock Embeds 3% Bitcoin Allocation into Canadian Global Equity ETF
BlackRock has launched two new funds in Canada, one of which offers investors direct exposure to Bitcoin through a 3% weighting within a global equity ETF.
The IBQT fund combines broad exposure to global equity markets with a fixed allocation of 3% in Bitcoin, accessed through the existing Canadian iShares Bitcoin ETF. This approach allows BlackRock to sidestep regulatory friction while offering institutional investors and financial advisors a ready-made crypto allocation.
The choice of 3% as the allocation threshold is based on modern portfolio theory, which suggests that a weighting between 1% and 5% in a highly volatile asset can improve overall risk-adjusted return without exposing the portfolio to excessive volatility.
BlackRock's decision fits into a broader dynamic, as the company has accumulated over 500,000 BTC inside its iShares Bitcoin Trust (IBIT) since the approval of spot Bitcoin ETFs in the United States in January 2024.