Big news from the world of finance: BlackRock has just added its iShares Bitcoin Trust (IBIT) – that’s the Bitcoin-holding fund they launched – to one of their model portfolios.

Now, for those not entirely in the know, these model portfolios are essentially investment strategy blueprints. They offer recommended portfolio makeups and rebalancing suggestions, which financial advisors and various platforms then utilize. Importantly, these advisors and platforms can also request adjustments to these models to better align with the specific investment goals of their clients.

According to James Seyffart, an ETF analyst over at Bloomberg Intelligence, BlackRock is starting with a measured approach, allocating between 1% and 2% to IBIT within their target allocation portfolio – specifically, the version designed for portfolios that include alternative assets.

Delving into the reasoning behind this decision, Michael Gates, who leads portfolio management for BlackRock’s Target Allocation ETF models, explained in a report released on Thursday that there are “several substantive arguments that support bitcoin’s long-term investment merit.”

Gates elaborated that this “investment merit” stems from Bitcoin’s unique position as a novel store of value and a global monetary alternative. He also highlighted its potential as a hedge against the dominance of the U.S. dollar and as a buffer against political instability. Furthermore, he sees it as a way to capitalize on the ongoing digital transformation of goods and services, acting as a “proxy play” as we shift from the “offline” to the “online” realm.

“When you put it all together,” Gates wrote, “these features could really bring something special to the table, offering unique opportunities for better returns and diversification within traditional investment portfolios.”

While it’s worth noting that this particular model portfolio is among IBIT’s smaller holdings, this step is still considered a pretty big deal. Why? Because it marks the very first time BlackRock has decided to include IBIT in any of their investment models.

Seyffart put it plainly: “This is a big deal because this is the *first* of those models to add bitcoin.” He anticipates this might not be the last such move from BlackRock, but also acknowledged Bitcoin’s somewhat divisive nature, adding, “bitcoin is also a lightning rod for many — some will absolutely love this, while others will hate it — so it remains to be seen if or when they might incorporate IBIT into their main models, which are followed by significantly larger sums of money.”

Just to give you an idea of scale, BlackRock’s model portfolios collectively manage around $130 billion in assets.