The most useful piece on Bitcoin position sizing I've read came from BlackRock's Investment Institute in December 2024, and it barely mentions return targets. It sizes the position by risk. In a 60/40 portfolio, a 1-2% Bitcoin allocation added about as much to total risk as a single Magnificent 7 stock, based on weekly returns from May 2012 to July 2024. Above 2%, Bitcoin's share of portfolio risk grew out of proportion. That's the language an investment committee already speaks: a risk budget, sized to what the portfolio can carry. I'd start every allocation conversation there.
Patrick LowryShare
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