Digital Asset Allocation

Thursday September 17, 2020

The crypto industry has evolved significantly over the past five years. It is no longer purely speculative; use cases that add real value are emerging, and with them, significant institutional interest. As governments continue to print money, cryptocurrency is being seen as an uncorrelated asset that investors are increasingly using to balance their portfolios. With the recent massive quantitative easing and expected stagflation, institutional interest in negatively correlated or uncorrelated asset classes, such as gold and crypto, are at an all-time high.

Strategic Advisor to the CEO of Ripple and former Co-President of Morgan Stanley Zoe Cruz discusses the impact of adding cryptocurrencies to a traditional portfolio. What are the benefits to a traditional stock/bond portfolio? How does cryptocurrency as an asset class compare to venture capital? How much allocation is ideal for different profiles of investors? What would be the potential positive and negative impacts of long-tail scenarios on the overall portfolio performance?