Bitcoin Offers Diversification For Retirement Portfolios

One practice that is used by investors around the world is diversification. Diversification simply means not putting all of our eggs into one basket. Smart money managers spread the total amount of investment capital across as wide a range of investment styles and asset classes as possible. Diversifying your investment portfolio is especially important for investments that are being used for your retirement. Over the last few years a large number of people were fortunate enough to buy in when Bitcoin was priced at $35 and sell when it reached $1000. This profit can of course be used for....

Single-family offices are investing in bitcoin as a way to diversify portfolios, according to Angelo Robles, founder and CEO of the Family Office Association, reported Russ Alan Prince, a contributor to Forbes who writes on wealth management. Single family offices are following hedge fund investors and institutional players in looking to bitcoin for asset diversification. Prince, president of R.A. Prince & Associates, is one of several wealth management experts who has noted more people are considering bitcoin as a way to diversify investment portfolios. Bitcoin’s Benefits. Bitcoin is....

After saying that cryptocurrencies “rank as the poorest hedge for major drawdowns in equities, with questionable diversification benefits,” JPMorgan says investors can put 1% of their portfolios in cryptocurrencies. This can help “achieve any efficiency gain in the overall risk-adjusted returns of the portfolio,” the firm’s strategists explained. Investors Can Allocate 1% of Portfolios to Bitcoin, Says JPMorgan JPMorgan Chase now sees benefits in adding a small percentage of bitcoin to a multi-asset portfolio. The firm’s global head of research, Joyce....

Unsurprisingly, the role of crypto in retirement investment will depend on the asset class’ mainstream adoption. On March 11, the United States Department of Labor warned employers that sponsor 401(k) retirement plans to “exercise extreme care” when dealing with cryptocurrencies and other digital assets, even threatening to pay extra legal attention to retirement plans with significant crypto investments.Its rationale is familiar to any crypto investor: The risk of fraud aside, digital assets are prone to volatility and, thus, may pose risks to the retirement savings of America’s workers.....

DAiM has launched the United States’ first employer-sponsored retirement plans that support investments in Bitcoin. U.S.-based asset manager, Digital Asset Investment Management (DAiM), has launched the country’s first employer-sponsored 401(k) retirement plans supporting Bitcoin.According to a Nov. 19 announcement, DAiM will serve as the advisor and fiduciary in helping companies “create a 401(k) plan that offers several recommended model portfolios of varying risk to traditional assets and allocation of up to 10% to Bitcoin.”The BTC will be held in cold storage by Gemini Trust, allowing....