--- title: The case for a 2% Bitcoin allocation into multi-assets portfolios by Blackrock: description: "\"So how can investors think about a bitcoin allocation? We take a risk budgeting approach: sizing the allocation based on how much it would contribute to total portfolio risk – measured by its long-run volatility and correlation to other assets (...). But from a portfolio construction perspective, it has some similarities with the “magnificent 7” group of mostly mega-cap tech stocks. Their market value – averaging $2.5 trillion in December 2024 – is similar to bitcoin’s (...) \nIn a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks – if held at their current weights in the MSCI World – each account for 4% of the overall portfolio risk on average. That’s about the same share a 1-2% exposure to bitcoin would represent: Even though bitcoin’s correlation to other assets is relatively low, it’s more volatile, making its effect on total risk contribution similar overall. \nA bitcoin allocation would have the advantage of providing a diverse source of risk, while an overweight to the magnificent 7 would add to existing risk and to portfolio concentration.\nWhy not more than 2%? A larger bitcoin allocation means its share of overall portfolio risk rises sharply. This effect is small when the allocation is small, but above 2% bitcoin’s share of total portfolio risk becomes outsized compared with the average magnificent 7 stock (...) . \nIn an extreme case, should there no longer be any prospect of broad bitcoin adoption, the loss could be the entire 1-2% allocation. We think this is much less likely to happen to a magnificent 7 stock given these companies generate major cash flow and have tangible underlying assets.\nThe upshot? By allocating no more than 2% to bitcoin, investors would: 1) introduce a very different source of return and risk; and 2) manage risk exposure to bitcoin\"." image: https://blog.syzgroup.com/hubfs/5-Dec-16-2024-03-09-11-2286-PM.jpg --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANÇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [Français](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. 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This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. 16 Dec 2024 - - - #### The case for a 2% Bitcoin allocation into multi-assets portfolios by Blackrock: "So how can investors think about a bitcoin allocation? We take a risk budgeting approach: sizing the allocation based on how much it would contribute to total portfolio risk – measured by its long-run volatility and correlation to other assets (...). But from a portfolio construction perspective, it has some similarities with the “magnificent 7” group of mostly mega-cap tech stocks. Their market value – averaging $2.5 trillion in December 2024 – is similar to bitcoin’s (...) In a traditional portfolio with a mix of 60% stocks and 40% bonds, those seven stocks – if held at their current weights in the MSCI World – each account for 4% of the overall portfolio risk on average. That’s about the same share a 1-2% exposure to bitcoin would represent: Even though bitcoin’s correlation to other assets is relatively low, it’s more volatile, making its effect on total risk contribution similar overall. A bitcoin allocation would have the advantage of providing a diverse source of risk, while an overweight to the magnificent 7 would add to existing risk and to portfolio concentration. Why not more than 2%? A larger bitcoin allocation means its share of overall portfolio risk rises sharply. This effect is small when the allocation is small, but above 2% bitcoin’s share of total portfolio risk becomes outsized compared with the average magnificent 7 stock (...) . In an extreme case, should there no longer be any prospect of broad bitcoin adoption, the loss could be the entire 1-2% allocation. We think this is much less likely to happen to a magnificent 7 stock given these companies generate major cash flow and have tangible underlying assets. The upshot? By allocating no more than 2% to bitcoin, investors would: 1) introduce a very different source of return and risk; and 2) manage risk exposure to bitcoin". [#investing|](https://blog.syzgroup.com/syz-the-moment/tag/investing) [#bitcoin](https://blog.syzgroup.com/syz-the-moment/tag/bitcoin) ![The case for a 2% Bitcoin allocation into multi-assets portfolios by Blackrock:](https://blog.syzgroup.com/hubfs/5-Dec-16-2024-03-09-11-2286-PM.jpg) ![The case for a 2% Bitcoin allocation into multi-assets portfolios by Blackrock:](https://blog.syzgroup.com/hubfs/5-Dec-16-2024-03-09-11-2286-PM.jpg) #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [ETF|](https://blog.syzgroup.com/syz-the-moment/tag/etf) [bitcoin](https://blog.syzgroup.com/syz-the-moment/tag/bitcoin) #### [Here's a look at the cumulative Bitcoin ETF flows since their peak on October 10th.](https://blog.syzgroup.com/syz-the-moment/heres-a-look-at-the-cumulative-bitcoin-etf-flows-since-their-peak-on-october-10th?hsLang=en) We're positive YTD and flows still coming into the ETFs but were still about $5 bln away from erasing the cumulative outflow hole. Source: James Seyffart **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 01/10/2026 [Food for Thought|](https://blog.syzgroup.com/syz-the-moment/tag/food-for-thought) [bitcoin](https://blog.syzgroup.com/syz-the-moment/tag/bitcoin) #### [Satoshi Nakamoto enters the top 22 wealthiest people on Earth.](https://blog.syzgroup.com/syz-the-moment/satoshi-nakamoto-enters-the-top-22-wealthiest-people-on-earth?hsLang=en) Source: Bitcoin Archive **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 23/09/2026 [Crypto|](https://blog.syzgroup.com/syz-the-moment/tag/crypto) [bitcoin](https://blog.syzgroup.com/syz-the-moment/tag/bitcoin) #### [HYPE, the native cryptocurrency of the Hyperliquid layer-1 blockchain and decentralized trading platform, set a fresh all-time high above $90 on Friday as the protocol rolled out manual borrowing.](https://blog.syzgroup.com/syz-the-moment/hype-the-native-cryptocurrency-of-the-hyperliquid-layer-1-blockchain-and-decentralized-trading-platform-set-a-fresh-all-time-high-above-90-on-frid-1790004951306?hsLang=en) HYPE surged as high as $90.92 shortly after Hyperliquid announced users can now supply HYPE and Bitcoin as collateral to borrow the stablecoins USDC and Tether’s USDt (USDT). “Manual borrows are live on Hyperliquid,” the protocol said, adding that the feature and its portfolio-margin system use the same underlying HyperCore infrastructure. Hyperliquid co-founder Jeff Yan said the design means every borrowed asset comes from a supplier rather than being created through platform-level margin accounting. Source: cointelegraph **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 21/09/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. 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