Is Bitcoin no longer the 'outlier', but rather a required course in asset allocation?
The world's largest asset management company, BlackRock, has issued a report giving Bitcoin a 'mainstream asset ID'.
I sit in front of the computer, flipping through BlackRock's latest investment outlook report, feeling a surge of emotions. I still remember a few years ago at a family gathering when I mentioned Bitcoin, my conservative uncle nearly kicked me out of the house, saying "scam! bubble! a toy for speculators!"
And today, BlackRock directly lists Bitcoin alongside U.S. Treasuries and tech stocks as the three pillars of a modern investment portfolio. As an analyst who has been navigating the crypto industry for many years, I seem to have witnessed the moment when the last line of defense in traditional finance was breached.
But after the carnival, we need to calm down and think: what does the large-scale entry of institutions mean for ordinary investors?
01 BlackRock's Shift in Attitude: The 'Compliance' Breakthrough for Bitcoin
BlackRock did not suddenly develop a fondness for Bitcoin overnight. Looking back at the 20-year journey of this asset management giant entering the Chinese market, from first knocking on the door of the Chinese capital market in 2006 to becoming the first wholly foreign-owned public fund in 2021, BlackRock has always been known for its cautious layout.
It is precisely this background that makes its recognition of Bitcoin more significant.
At the beginning of 2025, BlackRock has already started to include Bitcoin in mainstream asset discussions in its investment outlook. By the second half of the year, this recognition has become clearer. BlackRock's Greater China Investment Strategist, Lu Wenjie, directly pointed out that they will "continue to hold risk assets, especially in alignment with long-term trends like AI and energy."
On the surface, BlackRock does not specifically mention Bitcoin, but in conjunction with its global business layout, Bitcoin is indeed one of the long-term trends they refer to.
More notably, BlackRock's Head of China, Fan Hua, revealed in an interview that BlackRock is opening the door for domestic investors to allocate global assets through "cross-border investment." Although she did not directly mention Bitcoin, anyone with insight knows that Bitcoin is an indispensable part of global asset allocation.
02 Three Core Values: Why Does Bitcoin Attract Institutional Funds?
So, what is the charm of Bitcoin that makes traditional financial giants like BlackRock look at it differently?
First, there is a constant supply, and the anti-inflation logic is getting stronger. The total number of Bitcoins is fixed at 21 million, and no central bank can print them indefinitely. In the context of severe dollar inflation and currency depreciation in various countries, Bitcoin has become a scarce hedging asset.
BlackRock's Chief Economist for China, Song Yu, also pointed out that current "monetary policy expectations are still likely to lower interest rates and reserve requirements, and the real interest rate in the short term needs to be further reduced." This loose monetary environment highlights Bitcoin's anti-inflation properties.
Secondly, there is the strong resilience of the consensus network. Bitcoin has been declared "dead" countless times, yet it always rises from the ashes. Currently, the number of global cryptocurrency holders has reached about 617 million, with monthly active users as high as 60 million. This scale of consensus cannot be destroyed by any single country or institution.
Thirdly, there is the accelerated inflow of institutional funds. The U.S. Bitcoin spot ETF has become an important channel for capital inflow into the crypto market. Institutions like BlackRock not only hold Bitcoin themselves but also attract more traditional capital by launching related products.
This strategy of "being both a player and a referee" has effectively restructured the Bitcoin ecosystem.
03 Retail Survival Guide: How to Avoid Being Harvested in the Institutional Era?
The entry of institutions has certainly enhanced Bitcoin's legitimacy, but it has also fundamentally changed the rules of the game. As ordinary investors, we must adjust our strategies to survive and even thrive in the new environment.
Abandon short-term speculative thinking and shift to a long-term allocation perspective. BlackRock's Fan Hua advises investors to "adjust return expectations," as the interest rate level in the Chinese market has decreased. To achieve higher returns, one needs to "be prepared to take on higher risks and more volatility."
Regarding Bitcoin, I personally suggest treating it as part of an asset allocation, keeping the position within 5%-10% of total assets, to avoid heavy bets.
Adopt a dollar-cost averaging strategy to avoid emotional buying and selling. By regularly and fixedly purchasing, one can smooth market fluctuations and avoid being passive due to emotional operations. BlackRock's Director of Quantitative and Multi-Asset Investments, Wang Xiaojing, also believes that in the current environment, "the stock and bond markets are promising on both sides," which indirectly recognizes the value of diversification.
Pay attention to institutional indicators, but maintain independent thinking. Keep an eye on the inflow/outflow data of mainstream Bitcoin ETFs, as well as the announcements of major listed companies regarding their increasing/decreasing holdings. At the same time, one must maintain critical thinking about market news, as institutions often have motives to mislead retail investors to create better entry or exit opportunities for themselves.
Be extremely cautious with high leverage. In a market with high volatility, using high leverage is like walking on the edge of a cliff. For example, from the evening of November 25 to the early morning of November 26 last year, Bitcoin's price suddenly plummeted after soaring to around $99,000, with a drop of over 6% within a few hours, causing more than 170,000 people to be liquidated.
04 Future Outlook: How Will Bitcoin's Role in Asset Allocation Evolve?
Standing at the end of 2025, I believe Bitcoin's role in asset allocation will continue to evolve.
Bitcoin will transition from a speculative asset to a value storage tool. With the participation of more institutional investors, Bitcoin's volatility is expected to gradually decrease, making it truly become "digital gold." The actions of institutions like BlackRock have already shown that they value Bitcoin's long-term value storage function rather than its short-term speculative value.
The global asset allocation landscape will be reshuffled. The low correlation of Bitcoin with other traditional assets makes it an effective diversification tool. As more investors recognize this, Bitcoin will become an indispensable part of asset allocation.
The regulatory environment will gradually clarify. Currently, the global regulatory uncertainty surrounding crypto assets remains high, but with the participation of mainstream institutions like BlackRock, the regulatory framework is expected to gradually become clearer. Of course, the clarification of regulations also means that Bitcoin will lose some of its "decentralized" characteristics, which is an inevitable compromise.
05 Conclusion: Calmly Consider the Opportunities and Challenges of Bitcoin
BlackRock's recognition of Bitcoin is undoubtedly an important milestone in the history of cryptocurrency development. However, as ordinary investors, we need to see both the opportunities brought by this change and the risks involved.
I personally believe that Bitcoin has proven its resilience, but it is still a relatively young asset class. When incorporating it into an investment portfolio, we must act according to our capabilities and not be driven by FOMO emotions.
Bitcoin is not a shortcut to overnight wealth, but a tool for long-term value storage. True wealth is not about getting rich quickly, but about enduring through cycles.
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