BlackRock Re-Confirms 1-2% Allocation to Bitcoin Still Works

BlackRock has re-underwritten its investment thesis on Bitcoin, finding that it remains a valuable addition to a diversified portfolio. The firm's analysis suggests that a 1-2% allocation to Bitcoin can increase annualized return while only modestly increasing volatility.

In its rolling 10-year analysis through May 29, 2026, BlackRock found that a traditional 60/40 equity and fixed-income portfolio generated an annualized return of approximately 9.9% with an annualized standard deviation of roughly 10.1%. Adding a 1% allocation to Bitcoin increased annualized return to approximately 10.9%, while volatility moved only modestly higher to roughly 10.3%

The firm's research suggests that the incremental return from adding Bitcoin to a portfolio more than compensates for the additional volatility, improving the Sharpe ratio from 0.81 to 0.96 with a 2% allocation.