Why You Should Have Some Bitcoin in Your Portfolio

VanEck Proposal

Investment management firm VanEck has long shown interest in Bitcoin, evident from their Bitcoin ETF proposal in September of 2019. Although that endeavor never came to fruition, this roadblock has not deterred VanEck from venturing into the crypto space in profitable and innovative ways. A recently published report from VanEck detailed the potential risk and reward  profile of allocating a percentage of your portfolio to Bitcoin. The report conducted several analyses with various return possibilities in order to determine which diversification method resulted in the best returns. According to the report, “A small allocation to Bitcoin significantly enhanced the cumulative return of a 60% equity and 40% bonds portfolio allocation mix while only minimally impacting its volatility.”

Remaining Obstacles

When conducting the analysis VanEck considered several different portfolio allocations, and the portfolios with 3% Bitcoin consistently yielded the highest returns. That being said, however, there are many obstacles for Bitcoin to overcome in order for it to become a staple in institutional investor’s portfolios. There are still lingering liquidity issues that concern institutional investors, as well as its stark contrast to traditional financial markets. That being said, many crypto-enthusiasts are optimistic that institutional investment may be the key to a new injection of capital that will subsequently drive the price of Bitcoin to all time highs. 

Bitcoin No Longer the Black Sheep?

Since its inception, Bitcoin has been seen as a sort of step-child to traditional financial assets. There is an unmistakable air of excitement in the community currently, and big time institutional players are beginning to take notice. 

Disclaimer

The information contained in this Article is not intended to be a source of advice or investment analysis with respect to the material presented, and the information contained in this Article does not constitute investment advice. The information is intended to be used and must be used for informational purposes only. The ideas, strategies, reports, Articles and other information expressed in this Article are our opinions and should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Readers should be aware that trading tokens and all other financial instruments involves risk. Past performance is no guarantee of future results, and we make no representation that any reader of this Article or any other person will or is likely to achieve similar results.

Any views or opinions represented in this Article are personal and belong solely to Market Rebellion and do not represent those of people or companies that Market Rebellion and its affiliates may or may not be associated with in a professional or personal capacity, unless explicitly stated. Furthermore, Market Rebellion, and/or its affiliates, including contributors to the ideas, strategies, reports, articles and other information in this Article, may have a financial interest in one or more of the tokens mentioned or the company granting or issuing the token, or otherwise have a business relationship with such company.

While we have made every attempt to ensure that the information contained in this Article is correct, Market Rebellion is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in this Article is provided “as is” and without warranty of any kind, express or implied. In no event shall Market Rebellion be liable to you or anyone else for any decision made or action taken in reliance on the information in this Article or for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with this Article or the information contained in this Article. Market Rebellion reserves the right to make additions, deletions, or modifications to the contents on this Article at any time without prior notice.