Crypto
Bitcoin's Place in a Diversified Portfolio: What the Numbers Say
Bitcoin is no longer seen as a speculative fringe asset class.
The launch of spot Bitcoin ETFs has made it widely adopted in portfolios, with funds like the iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund managing around $100 billion.
A 5% allocation to Bitcoin can increase portfolio volatility, but its low correlation to stocks makes it a reasonable diversifier.
Historical analysis shows that adding 5% of the portfolio to the S&P 500 would have contributed 7.35% of the overall risk.