BlackRock integrates Bitcoin-ETF into financial advisor portfolios
BlackRock integrates Bitcoin-ETF into financial advisor portfolios
BlackRock, the world's largest asset manager, is integrating its iShares Bitcoin Trust ETF (IBIT) into select model portfolios marketed to financial advisors.
The move introduces a 1% to 2% allocation of IBIT in investment strategies designed to include alternative assets, according to Bloomberg.
As the largest spot Bitcoin-ETF, IBIT currently holds over $48 billion in assets under management (AUM). The inclusion of Bitcoin in BlackRock’s financial advisor portfolios signals increasing mainstream adoption of crypto assets, even amid a broader market correction.
Market volatility and record outflows
The decision comes at a time when Bitcoin prices have been retreating, experiencing a 21% decline in February, the second-worst performance for the month in history. On Wednesday, IBIT recorded $418.1 million in net outflows, the largest single-day exit since its launch. Analysts attribute the pullback to investor profit-taking following Bitcoin’s strong rally earlier this year.
Despite recent selling pressure, BlackRock’s ETF remains the dominant spot Bitcoin-ETF, with Fidelity’s competing product ranking second at $23 billion AUM. Standard Chartered’s Geoffrey Kendrick predicts Bitcoin could drop to the $69,000–$76,500 range in the near term as the market recalibrates.
While IBIT has already established itself as a market leader, its integration into model portfolios could spur fresh institutional inflows, supporting both the fund and Bitcoin’s price. Bloomberg notes that model portfolios have grown significantly in recent years, and adjustments to their asset allocations can trigger substantial market movements.
With BlackRock continuing to strengthen Bitcoin’s role in traditional investment frameworks, its latest move may lay the groundwork for greater institutional adoption of crypto assets in the long run.
Previously, BlackRock moved Bitcoin and Ethereum to Coinbase Prime.
