Photographer: Angel Garcia/Bloomberg

JPMorgan Chase & Co. is the latest Wall Street firm floating the idea of investors using Bitcoin as a way to diversify their portfolios.

Strategists have recently touted cryptocurrency as a way to hedge against significant fluctuations in traditional asset classes such as stocks, bonds and commodities. Rather than making any big bets on Bitcoin, they’ve been recommending a relatively small allocation, which wouldn’t take too much of a hit even if the price goes down substantially.

“In a multi-asset portfolio, investors can likely add up to 1% of their allocation to cryptocurrencies in order to achieve any efficiency gain in the overall risk-adjusted returns of the portfolio,” strategists including Joyce Chang and Amy Ho wrote in a note Wednesday.

(Excerpt) Read more Here | 2021-02-25 07:55:02
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