How much of a shift does BlackRock’s latest move represent for traditional asset allocation models? The firm increased Bitcoin holdings in its $17.1 billion Global Allocation Fund by 38.4% in Q2 2025, raising the position to 1,000,808 shares, which now represent roughly 0.4% of assets under management, up from 0.25%. This change, a 62.5% increase in exposure within the fund, remains modest in absolute terms but signals a deliberate adjustment in portfolio construction, as BlackRock has indicated a target range closer to 1%–2% for Bitcoin allocations across certain portfolios. The approach is strategic and cautious, reflecting an institutional-grade process rather than speculative accumulation. This shift reflects growing confidence in scalable blockchain solutions that support institutional adoption.
The fund’s increased allocation reflects broader changes in product availability and regulatory clarity, with the SEC’s new generic listing standards shortening crypto ETF approval windows from about 240 to 75 days, which has accelerated the launch of Bitcoin and other crypto ETFs. BlackRock began offering iShares Bitcoin Trust (IBIT) in January 2025, attracting significant inflows early on, and has modified fund filings to permit direct purchases of Bitcoin ETPs traded on national exchanges, moving beyond prior reliance on futures contracts. These operational shifts permit mutual funds such as the Global Allocation Fund to buy shares of Bitcoin ETFs, including potentially BlackRock’s own offerings. BlackRock added 440 million dollars from Ethereum to Bitcoin This operational flexibility has been a key enabler of the recent reweighting. BlackRock’s disclosure also noted that ibits are eligible for purchase by several of its funds.
BlackRock’s strategy emphasizes selectivity, focusing on Bitcoin and Ethereum while avoiding a wide array of altcoins, aiming to balance market access with risk control and competitive ETF market positioning. The firm also seeks to generate yield, as exemplified by the new Bitcoin Premium Income ETF that writes covered calls on futures to target a 2%–4% annual yield, which indicates a tactical move from pure price exposure toward income-oriented crypto strategies. This evolution aligns with the digital asset business generating more than $260 million in 2025 revenues, largely from Bitcoin ETFs.
BlackRock is selectively leaning into Bitcoin and Ethereum, prioritizing risk-controlled access and income-focused strategies like covered‑call premium funds.
Investors are advised to weigh both diversification benefits, given Bitcoin’s historically low correlation with traditional markets, and attendant risks, including volatility and evolving regulation, while recognizing that current allocations remain a small, growing component within a broadly diversified global allocation mandate.
