So which coins should be allocated to the other 90%? Let’s all talk about it!

CoinShares report: Optimal Bitcoin allocation ratio is between 4-10%

According to news on June 19, according to the latest report from CoinShares, the traditional 60/40 investment portfolio (60% stocks and 40% bonds) is no longer suitable for the current market environment. Research shows that including Bitcoin in an investment portfolio can significantly improve risk-adjusted returns. Allocating 4% of Bitcoin to the 60/40 portfolio increases the Sharpe ratio (a measure of an investment's return relative to its risk) from 0.48 to 1.05 and reduces the portfolio's correlation. In addition, Bitcoin has also shown significant diversification and return enhancement effects in classic portfolios such as the All Weather Portfolio and the Yale Endowment. Analysis suggests that the optimal Bitcoin allocation ratio is between 4-10%, which can significantly improve portfolio performance while maintaining reasonable risks.

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