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).

Bitcoin A Hedge Against Fiat Depreciation?

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.

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Is 5% Bitcoin Allocation Too High?

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.

Is Bitcoin Even ‘Digital Gold?’

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.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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