The VanEck company is optimistic about the price of both cryptocurrencies and establishes what could be a good distribution of capital.
VanEck, a financial asset management firm, determined the optimal bitcoin (BTC) and ether (ETH) allocation percentage that — in its opinion — an investment portfolio should possess to maximize risk-adjusted returns.
In the analysis prepared by Matthew Sigel, Patrick Bush and Denis Zinoviev, all possible combinations are derived to maximize the sharpe ratio, a measure used to evaluate the performance of an investment in relation to the risk assumed.
This is how the experts came to the following conclusion:
“The analysis revealed that the ideal allocation was 71.4% bitcoin and 28.6% ether. This setup yielded the highest Sharpe ratio, indicating the best risk-adjusted performance for a cryptocurrency-only portfolio. The findings underlined the need for investors to hold both assets to maximize returns. The naive allocation of 50% BTC and 50% ETH also demonstrated substantial advantages, reinforcing the value of diversification within the cryptocurrency class.”
Matthew Sigel, Patrick Bush and Denis Zinoviev, analysts at VanEck.
