Following Bitcoin’s roughly 50% decline from its October 2025 peak, BlackRock has re-assessed its role in institutional portfolios. In its rolling 10-year analysis through May 29, 2026, a 2% Bitcoin allocation added approximately 190 basis points of annualized return while increasing volatility by only 50 basis points, improving the Sharpe ratio from 0.81 to 0.96. Maximum portfolio drawdown shifted marginally from -20.3% to -20.9%. BlackRock maintains its recommendation of a 1 to 2% allocation for eligible institutional investors, arguing that Bitcoin’s risk and return drivers remain fundamentally different from traditional assets.
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