BlackRock Maintains Bitcoin Allocation Case After 53% Drop, Cuts IBIT Minimum by 96% as ETF Inflows Hit $1B in August

BlackRock published a report stating that Bitcoin's more than 50% decline from its October 2025 all-time high of roughly $126,000 has not changed the asset's long-term investment case, attributing the sell-off to excess leverage, weaker capital flows and shifting macro expectations rather than a breakdown in Bitcoin's fundamentals. The firm continues to recommend a 1-2% portfolio allocation to Bitcoin, funded out of equities, and said the market has "largely purged" the froth that preceded the peak. Separately, BlackRock cut the minimum investment threshold for its IBIT Bitcoin ETF by 96%, broadening access to the product at a time when institutional demand remains firm.

BlackRock clients purchased $143.57 million in Bitcoin through IBIT in a single session, and across all Bitcoin ETF issuers, including BlackRock and Fidelity, inflows reached $189.3 million on Tuesday, pushing August's total to roughly $951 million after the prior week saw $250 million in outflows. Bitcoin reclaimed $64,000 during the period, with Wall Street characterizing the price level as an accumulation phase. On fixed income, BlackRock and Aviva shifted toward short-dated bonds as long-duration debt weakened amid a spike in yields, a topic BlackRock's Rick Rieder was set to address on CNBC's Closing Bell.

BlackRock and Oaktree also took control of MBS Group, according to the Financial Times, while BlackRock and Capital Group anchored IDFC FIRST Bank's debut $500 million global bond offering. BlackRock's head of thematic equities Evy Hambro said copper's upward trend remains intact, citing a tight supply market. CEO Larry Fink reiterated his view that tokenization represents "the next generation for markets" as major financial institutions accelerate the migration of real assets onto blockchains.