Bitwise CIO: Bitcoin's role in traditional portfolios should be re-evaluated

Odaily News Matt Hougan, chief investment officer of Bitwise, said that institutional investors should reconsider the allocation ratio of Bitcoin in the traditional 60/40 portfolio. He pointed out that the past practice of treating Bitcoin as a marginal asset is no longer applicable and suggested increasing the allocation ratio from 1% to 5%.
Matt Hougan emphasized that with the launch of Bitcoin ETFs and the rise of institutional interest, Bitcoin is gradually becoming part of mainstream asset allocation. Bitwise's research shows that under the quarterly rebalancing strategy, since 2014, portfolios allocated to Bitcoin have achieved positive returns in 74% of one-year periods, 93% of two-year periods, and 100% of three-year periods. He believes that these data show that Bitcoin has positive risk-adjusted return potential in traditional investment portfolios. (The Block)