BlackRock says advisors should consider Bitcoin, gold, and alternative strategies as portfolio diversifiers, as stock and bond correlations remain elevated in the current market regime.
In a May 6 report titled "How to diversify with bitcoin, gold and alternative investments," the asset manager argues that geopolitical and economic shocks have made traditional portfolio construction less reliable. The role of bonds as a stock market diversifier has weakened since 2020, with volatility and stock-bond correlations rising compared to the 2010s.
The firm highlights digital assets, precious metals, and liquid alternative strategies as sources of low-correlation diversification. BlackRock's iShares Bitcoin Trust ETF has shown lower correlation to equities than traditional assets. From 2022 through the first quarter of 2026, Bitcoin's correlation to the S&P 500 stood at 0.53, while gold's was 0.19. The two assets have a low correlation with each other at 0.10, suggesting combining them could enhance diversification.
BlackRock maintains that a 1% to 2% Bitcoin allocation may be reasonable for multi-asset investors with high conviction and tolerance for drawdowns. Allocations above that range could sharply increase portfolio risk. The firm notes Bitcoin's adoption is tied to concerns around monetary and geopolitical stability, US fiscal sustainability, and political stability.
Bitcoin fell 2% on the day to trade near $79,900 at press time, losing momentum after briefly climbing above $82,000.