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

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ME News message. On April 8 (UTC+8), Charles Schwab released a research report discussing cryptocurrency investment strategies. The report said there is no “correct” fixed allocation ratio, and that decisions depend on investors’ goals, risk tolerance, and outlook.

The report proposed 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 that adding cryptocurrencies to the overall investment portfolio would increase). Charles Schwab stated that even a slight increase in crypto asset allocation can make portfolio performance increasingly attributable to cryptocurrency performance.

For conservative, neutral, and aggressive portfolios, assuming Bitcoin’s annual return is 15%, the allocation ratios are approximately 1%, 6.6%, and 8.8%, respectively. Due to higher volatility, Ethereum has a smaller allocation ratio.

The report also noted that cryptocurrencies can provide some diversification benefits to traditional asset portfolios. (Source: PANews)

BTC-1.77%
ETH-1.13%
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