Ark Invest report: The optimal allocation proportion of Bitcoin in the investment portfolio in 2023 is 19.4%
Ark Invest stated in their "Big Ideas 2024" report that research shows the optimal allocation of Bitcoin in investment portfolios for maximizing risk-adjusted returns will be 19.4% in 2023. This is a significant increase from the 0.5% allocation in 2015 and the average optimal allocation of 4.8% from 2016 to 2022.
If the global investable assets of $250 trillion were allocated to Bitcoin, it would have a major impact on the price. Allocating just 1% to Bitcoin would result in a potential price of $120,000, while allocating 4.8% would result in a potential price of $550,000. Allocating 19.4% to Bitcoin would also result in a potential price of $550,000.
If financial assets were to migrate to blockchain infrastructure at a speed similar to that of the internet and the fees associated with decentralized financial services were one-third of traditional financial services, smart contracts could generate over $450 billion in annual fees and create over $5 trillion in market value, growing at compound annual growth rates of 78% and 32% respectively by 2030.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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