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Understanding Bitcoins Impact on Portfolio Performance

Published: 2021-02-01

Organization: WAVE Financial

Overview: As a novel source of risk and return, Bitcoin deserves attention from managers seeking a diversifying alternative for inclusion into their portfolio. After a decade on the scene, sufficient data have been generated to validate its benefits. Despite high inherent volatility, prudent risk weighting within a portfolio can maximize gains from Bitcoin inclusion while limiting exposure to the truly dramatic swings. In a highly variable world where the diversification benefits of traditional assets may be weakening, Bitcoin differentiates itself as an asset class.

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