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BlackRock research finds small Bitcoin allocations can lift portfolio returns

In a rolling 10-year backtest through May 29, 2026, adding 2% Bitcoin increased annualized returns to about 11.8% while volatility rose to roughly 10.6%.

Reported · Written up by our desk · Market Structure

BlackRock’s latest research revisits Bitcoin as a portfolio component after a major downturn, arguing that the more important question is how Bitcoin changes overall risk and return in a diversified mix rather than judging it only on standalone price swings. According to Bitcoin Magazine’s summary of the study, BlackRock examined a traditional 60/40 equity and fixed-income portfolio using a rolling 10-year window through May 29, 2026, finding it produced an annualized return of about 9.9% with annualized standard deviation around 10.1%.

Bitcoin Magazine reports that introducing a 1% Bitcoin allocation increased annualized return to roughly 10.9% while moving volatility only modestly higher to approximately 10.3%. At a 2% allocation, the research showed annualized return rising to about 11.8% and standard deviation to around 10.6%, with the analysis citing about 190 basis points of additional annualized return for roughly 50 basis points more annualized volatility.

BlackRock’s research also highlighted portfolio metrics, with the Sharpe ratio improving from 0.81 to 0.96, while maximum drawdown shifted from about -20.3% to -20.9%, based on the same rolling analysis period, as described by Bitcoin Magazine.

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