BlackRock urges 1‑2% Bitcoin allocation, cites AI shift and US debt risk

BlackRock has reiterated that Bitcoin can serve as a small complementary diversifier in investment portfolios, recommending an allocation of about 1% to 2% of total assets. The firm warns that larger positions increase portfolio volatility because Bitcoin remains highly volatile and its adoption trajectory is uncertain. BlackRock’s global head of digital assets says the current AI boom is drawing capital away from Bitcoin, gold and other alternative assets, but a rising U.S. debt burden and fiscal concerns could revive interest in Bitcoin as a hedge. The asset manager notes that long‑term Bitcoin holders are reducing sales and that outflows from spot Bitcoin ETFs have slowed in recent weeks. Bitcoin is trading near $62,000–$64,000. BlackRock continues to expand its Bitcoin‑linked offerings, including the iShares Bitcoin Trust and the newly launched iShares Bitcoin Premium Income ETF, which seeks income through option premiums while maintaining partial price exposure.