From 0% to 5%: How Bitcoin Secures Its Spot In Investment Strategies
The Benzinga Future of Digital Assets conference recently provided industry leaders with a platform to discuss Bitcoin’s evolving role in investment portfolios. A panel moderated by angel investor Erik LaPaglia explored how Bitcoin is transitioning from a speculative asset to a mainstay in institutional and retail investment strategies.
Increasing Allocations to Bitcoin
Zach Pandl, managing director of research at Grayscale Investments, highlighted the gradual adoption of Bitcoin in portfolios.
“Bitcoin used to be 0%… now it’s starting to crack into kind of 1%-2% for people,” he said, referencing its growing inclusion among investors. Pandl further predicted that allocations could eventually normalize at around 5%, driven by macroeconomic factors such as inflation and government debt.
Paul Cappelli, head of ETF strategies at Galaxy Digital, added that Bitcoin has become a reliable tool for portfolio diversification.
“It’s got a pretty long track record as a diversifier …
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