Bitcoin: An Asset Allocation Perspective
Fidelity says 5% or less crypto allocation. Vanguard doesn’t recommend investing in crypto at all.
This report done by lightfinance shows the utility in allocating Bitcoin in your portfolio. Your risk by not investing is your opportunity cost.
As you can see from the report, the portfolio with the highest allocation to Bitcoin gave not only the highest cumulative returns, but also the highest risk adjusted returns (Sharpe and Sortino ratios).
So why hasn’t Vanguard caught up yet? They’re antiquated. If they keep their mindset where it’s been, they will be harming their investors by not giving them proper exposure to the asset. They want to play it safe? Safety means underperformance.
Report HERE (Light Finance)