South Korea's Shinhan Recommends 2% Digital Asset Allocation

Shinhan Investment Securities in South Korea has proposed allocating 2% of investment portfolios to digital assets, following an analysis that found a favorable risk-adjusted performance with an 8-to-2 ratio between gold and Bitcoin. The firm's senior researcher Park Woo yeol noted that the traditional 60/40 portfolio strategy is no longer providing the expected diversification benefits due to stocks and bonds increasingly moving together.

The research also found that competition between traditional finance and crypto platforms is increasing as digital asset exchanges expand into stocks and ETFs. Crypto trading platforms are now offering products traditionally associated with securities markets, such as tokenized stocks and equity-linked products.

Park Woo yeol expects the changes to intensify competition for investors once U.S. stocks and ETFs become accessible during Korean market hours. The researcher also pointed out that crypto exchanges have an additional advantage in their operating hours due to digital asset markets continuing through weekends.