BlackRock Recommends 84.9% BTC Allocation in Equity and Bond Portfolios
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- BlackRock advises an 84.9% Bitcoin allocation in equity and bond portfolios.
- BlackRock researchers analyzed Bitcoin’s returns from 2010 to December 2021.
- While BTC’s third central moment of returns was 144%, equity and bond returns were -0.43% and 0.01%.
The world’s largest asset manager, BlackRock, published a research paper advocating for an aggressive allocation of Bitcoin in traditional investment portfolios. The paper is titled “Asset Allocation with Crypto: Application of Preferences for Positive Skewness.”
In the paper, BlackRock researchers suggested that the optimal allocation to Bitcoin in an investment portfolio consisting of 60% equities and 40% bonds should be a substantial 84.9%. X user “Bitcoin News” called attention to this development in a recent post.
REMINDER: Last summer BlackRock put out a paper stating that "Starting with a 60-40 equity-bond portfolio… the optimal #Bitcoin allocation is a large 84.9%"
— Bitcoin News (@BitcoinNewsCom) January 27, 2024pic.twitter.com/yqylKL2GDZ
Notably, the BlackRock researchers analyzed Bitcoin’s performance and returns from July 2010 to December 2021. They found that Bitcoin exhibi…
The post BlackRock Recommends 84.9% BTC Allocation in Equity and Bond Portfolios appeared first on Coin Edition.
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