BlackRock Says Bitcoin Can Diversify Portfolios as Correlation With Traditional Assets Stays Low

BlackRock, the world’s largest asset manager, has recommended Bitcoin as a portfolio diversification tool for clients.

In a report released on May 7, BlackRock said digital assets including Bitcoin show low correlation with traditional stocks and bonds, offering asset managers an attractive way to diversify portfolios.

Since 2020, stocks and bonds have both become more volatile and have increasingly moved in the same direction, BlackRock wrote. That may undermine the long-held assumption that bonds can shield portfolios when equities fall. The firm said investors should use alternative assets such as gold and Bitcoin to improve portfolio resilience.

BlackRock said Bitcoin’s low correlation with equities remains a key advantage despite its volatility. The report said Bitcoin’s correlation with the S&P 500 was 0.53 from 2022 through the first quarter of 2026, a low level relative to traditional asset classes. Bitcoin’s correlation with gold was just 0.10, it added, suggesting diversification benefits could be amplified when the two are held together.

BlackRock also emphasized the need for a cautious approach given Bitcoin’s high volatility. Unlike conventional alternative-asset allocations, which are typically funded by reducing bond exposure, Bitcoin is better funded by trimming equities because of its volatility profile, the report said. Even a small allocation to Bitcoin can have a significant effect on a portfolio.