Odaily Planet Daily reports that Bitwise Chief Investment Officer Matt Hougan stated that institutional investors should reconsider the allocation ratio of Bitcoin in the traditional 60/40 investment portfolio. He pointed out that the previous practice of treating Bitcoin as a fringe asset is no longer applicable and suggested increasing the allocation from 1% to 5%.
Matt Hougan emphasized that with the launch of Bitcoin ETFs and the rise of institutional interest, Bitcoin is gradually becoming part of mainstream asset allocation. Bitwise's research shows that under a quarterly rebalancing strategy, portfolios allocated with Bitcoin have achieved positive returns in 74% of one-year periods, 93% of two-year periods, and 100% of three-year periods since 2014. He believes these data indicate Bitcoin's potential for positive risk-adjusted returns in traditional portfolios. (The Block)