Charles Schwab Research on Cryptocurrency Investment Strategies, states that even small allocations can increase risk

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ME News Report, April 8 (UTC+8), Charles Schwab released a research report exploring cryptocurrency investment strategies, pointing out that there is no “correct” fixed allocation ratio, and decisions depend on investors’ goals, risk tolerance, and outlook. The report proposes two main approaches: a return-based approach (considering expected returns, volatility, and correlation with other assets) and a risk-based approach (focusing on the degree of risk added to the overall investment portfolio by cryptocurrencies). Charles Schwab states that even a slight increase in crypto asset allocation can make portfolio performance increasingly attributable to cryptocurrency performance. In conservative, neutral, and aggressive portfolios, assuming Bitcoin’s annual return is 15%, the allocation ratios are approximately 1%, 6.6%, and 8.8%, respectively. Ethereum, due to higher volatility, has a smaller allocation ratio. The report notes that cryptocurrencies can provide some diversification benefits to traditional asset portfolios. (Source: PANews)

BTC-1.24%
ETH-1.37%
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