Investing.com — BlackRock (NYSE:) Investment Institute (BII) has identified and as potential diversifiers to protect against stock sales, noting that traditional diversification options such as bonds have become less effective .
In a detailed document entitled “2025 Global Outlook”, the BII highlighted the distinct value drivers of , including its fixed offering and its potential for wider adoption as a payment system.
“Bitcoin’s role as a store of value and payment system makes it a potential diversifier,” said Samara Cohen, chief investment officer (CIO) for ETFs and index investing at BlackRock.
The asset’s limited historical correlation with stocks further reinforces its diversification potential.
“Bitcoin’s correlation with global stocks remains limited, even with occasional spikes. Given its unique value drivers, we see no intrinsic reason why bitcoin should be correlated with major risk assets over the long term “, says the BlackRock report.
The company cautions, however, that its risk-reward profile could change significantly if bitcoin gains mainstream adoption, bringing its utility closer to that of gold.
The precious metal continues to play a key role in portfolios, especially as central banks increase their reserves of the metal amid inflationary pressures.
BlackRock points out that gold’s performance as an inflation hedge has gained traction, particularly when traditional reserve currencies face challenges.
“Gold has soared as investors seek to strengthen their portfolios against higher inflation and some central banks seek alternatives to major reserve currencies,” the report said.
“We believe it is essential to monitor the performance of these alternatives compared to traditional asset classes and use them flexibly.
More generally, the BII emphasizes that it is structural changes, not usual economic cycles, that determine market dynamics, US growth and slowing inflation that defies conventional expectations. Markets remain volatile because they misinterpret these changes.
For 2025, BlackRock expects inflation to remain above target due to geopolitical tensions, investments in AI and an aging workforce. The Fed’s modest interest rate cuts and rising Treasury yields underscore the need for dynamic, diversified portfolios.
