BlackRock Recommends 84.9% Bitcoin Allocation in Stocks and Bonds Portfolio
The world’s largest asset manager BlackRock has published a research paper calling for an aggressive allocation to Bitcoin in traditional investment portfolios. The paper is titled “Asset Allocation with Crypto: Applying Preferences for Positive Skew.”
In the paper, BlackRock researchers suggested that the optimal Bitcoin allocation in an investment portfolio consisting of 60% stocks and 40% bonds should be a whopping 84.9%.
BlackRock’s analysts studied Bitcoin’s performance and returns from July 2010 to December 2021. They found that Bitcoin exhibited substantial volatility at 132% annualized. Notably, the asset demonstrated positive skewness when expressed in terms of continuously compounded returns.
