Janice R. Andrews
With Bitcoin (BTC-USD) surpassing $100,000, questions about cryptocurrency’s place in portfolios are more relevant than ever. Chris Gannatti, global head of research at WisdomTree, suggests an allocation of 1% to 5%, tailored to individual investor needs.
“Institutions are beginning to dip their toes in, gaining some exposure,” Gannatti explained. He predicts that traditional portfolio models, like the classic 60% equity and 40% bond mix, could eventually include a 2%-4% allocation for crypto.
As digital assets gain traction, investors should carefully assess their risk tolerance and objectives when determining crypto exposure. Maintaining a diversified portfolio remains crucial in managing the volatility of cryptocurrencies.
The evolving role of crypto highlights its growing importance in modern investment strategies.
