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CoinShares recommends a portfolio allocation of 4% in Bitcoin, says Cryptocurrency ‘Powers’ Investments

August 11, 2020

A report by CoinShares investment strategist James Butterfill was released this Monday recommending it Investors allocate 4% of their investment portfolio to Bitcoin.

According to Butterfill A portfolio with 4% of Bitcoin investments is “ideal for a 60/40 exposure strategy”.

The report also highlights Bitcoin’s behavior over the past few months, with the spread of the coronavirus pandemic and its economic impact.

CoinShares recommends a portfolio allocation of 4% in Bitcoin, says Cryptocurrency ‘Powers’ InvestmentsCoinShares recommends a portfolio allocation of 4% in Bitcoin, says Cryptocurrency ‘Powers’ Investments

The text says that The characteristics of Bitcoin have made the cryptocurrency attractive both for risk investments and in its role as a portfolio diversifier.

In addition, CoinShares, the largest cryptocurrency, has become a store of value compared to the emergence of new technologies and raw materials Recently, there has been significant infrastructure development and product integration in the cryptocurrency industry.

CoinShares also highlights the following:

“We see Bitcoin as an investment that is not a government store of value, with growth potential and no significant correlation with other asset classes. Bitcoin’s identity has changed over the years, but the evidence of growth is everyone. It is becoming increasingly clear that it is established itself as a store of value. “

Butterfill still remembers that there have been many attempts to incorporate Bitcoin into existing asset classes and structures, however Due to its number of as yet unclassifiable attributes, it cannot be in one of the established forms and structures.

Additionally, the director of CoinShares points out that in the high-end markets, BTC has acted like a technological move. The report adds:

“Bitcoin’s small holdings have been beneficial in terms of diversification compared to other alternative assets. […] To sum up, the characteristics of investing in Bitcoin in the past have proven attractive for enhancing returns and portfolio diversification. […] positive effects even with small amounts invested. Hence, Bitcoin can be a very good fit for a portfolio diversification company when portfolio management goes down. “

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