Bitcoin portfolio allocation: how much crypto should you hold?
Strategic allocation approaches
As cryptocurrencies become more accessible through exchange-traded funds (ETFs), investors face increasingly complex decisions regarding how to integrate digital assets into their portfolios.
Key considerations include:
- Whether to index crypto holdings
- How to manage volatility
- Understanding correlation with other asset classes
- Determining appropriate weighting
- Decide between concentrating on large-cap digital assets like Bitcoin and Ethereum or exploring broader crypto ecosystem exposure.
Some institutions advocate for sticking with the most liquid and widely traded cryptocurrencies, arguing that the current crypto landscape lacks enough mature alternatives to justify broader indexing.
