Key Takeaways:
Charles Schwab shows bitcoin allocations up to 22.4% depending on return assumptions. Bitcoin allocations reach 16.9% for moderate portfolios when expected returns climb to 25%. Risk-based models show 1.2% bitcoin exposure can account for 10% of total portfolio risk. Crypto Allocation Models Shift With Return Assumptions“Allocations are highly sensitive to, and dependent on, an investor’s subjective view of expected return.”
Risk-Based Framework Reveals Outsized Crypto Influence
