CoinShares Report: The optimal allocation ratio for BTC is between 4-10%

ChainCatcher news, according to the latest report from CoinShares, the traditional 60/40 portfolio (60% stocks and 40% bonds) is no longer suitable for the current market environment.

Research shows that incorporating Bitcoin into a portfolio can significantly enhance risk-adjusted returns. Allocating 4% of Bitcoin to a 60/40 portfolio increases the Sharpe ratio (a measure of investment return relative to its risk) from 0.48 to 1.05, while also reducing the portfolio's correlation.

Additionally, Bitcoin has shown significant diversification and return enhancement effects in classic portfolios such as the All Weather Portfolio and the Yale Endowment.

Analysis suggests that the optimal Bitcoin allocation ratio is between 4-10%, which can significantly improve portfolio performance while maintaining reasonable risk.