Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, said Tuesday that an “ideal” investment portfolio should have exposure to hard assets such as gold and Bitcoin (CRYPTO: BTC).
During an interview with CNBC, Rieder said that gold, Bitcoin and assets that provide a “ballast” against potential currency depreciation should be on investors’ radar.
When asked about the percentage of Bitcoin allocation in a portfolio, Rieder said that 5% seems “high” to him.
See Also: Gold Beats AI? This Miner Just Crushed Palantir In 2025
Rieder, who also heads BlackRock’s Global Allocation Fund, said that they have an exposure of 3 to 5% to gold.
“Gold strikes me today as a better currency hedge. Bitcoin tends to trade with the Nasdaq. So we’re running considerably lower than that in crypto,” he added.
Notably, BlackRock, the world’s largest asset management company, suggested 1-2% as the “reasonable range” of Bitcoin allocation in multi-asset portfolios last year. Exceeding the 2% threshold, however, could disproportionately increase the portfolio’s risk, the firm said.
On the other hand, billionaire hedge fund manager Ray Dalio advised investors last month to consider dedicating approximately 15% of their portfolio to either gold or Bitcoin.
Bitcoin, which is frequently marketed as an inflation hedge by its supporters, has behaved more like a risk-on asset this year, vulnerable to macroeconomic shocks. The apex cryptocurrency tumbled to $75,000 after the so-called “Libration Day,” where President Donald Trump announced sweeping tariffs.
A report by Franklin Templeton found that Bitcoin’s price correlation with the Nasdaq stock index has increased dramatically over the past three years, while ruling out a “statistically significant” association between Bitcoin and gold.
Price Action: At the time of writing, BTC was exchanging hands at $112,351, down 0.52% in the last 24 hours, according to data from Benzinga Pro.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo Courtesy: Diego Thomazini on Shutterstock
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today’s competitive market.