When it comes to a dangerous asset class like cryptocurrency, how many of the portfolios you have to allocate are the best wisdom about how difficult it is to get a handle. If you’re a more conservative investor, you might look horrible at all. On the other hand, if you are the Daredevil type, the risk is to keep your enthusiasm for chasing your high returns at your disadvantage that your sense of discretion will be overshadowed.
Fortunately, there is some information that will help you clarify exactly how reasonable you are to invest in crypto. Let’s take a look.
January 2025, Coinbase Global (NASDAQ: Coin) We conducted a survey of 352 decision-making institutional investors, including key asset managers, venture capital (VC) funds, family offices, private banks and hedge funds. All of these manage large amounts of capital. The survey relates to cryptocurrency and other digital assets, with the majority of respondents managing more than $1 billion in assets.
Each data suggests that 85% of respondents increased the capital allocated to digital assets last year, suggesting that asset classes are considered to have positive growth prospects. This supports the idea that investors with average risk tolerance should be happy to increase their allocations some time, especially if they have enough time to fully play upside down, especially if they can hold their purchases in the long run.
Additionally, in 2025, 59% of these institutional investors plan to allocate at least 5% of their managed assets to cryptocurrency. Only 8% said they planned to assign less than 1% of their portfolio to their asset classes. A full 26% report that they plan to put 10% of their AUM in the code. Even five years ago, these numbers could not have been thought of. It is clear that cryptocurrencies are no longer frontier assets. They are mainstream, very conservative and often in widespread recruitment, even within the risk aversion set.
But where does that leave investors who aren’t at the helm of their multi-billion dollar portfolio? And which cryptocurrencies are worth holding in your portfolio?
A few other numbers are useful guides here. 97% of the investigators held Bitcoin (Cryptography: BTC). 34% held XRP and 30% held Solana. Most other Altcoins were significantly less popular.
It is very reasonable for most investors to allocate 1% of their portfolio to Bitcoin, and if you want to take a little more risk, it is very reasonable to commit additional capital to the best altcoins like XRP or Solana. Topping with a total allocation of 5% to cryptocurrency as a group is not half the idea, but more than that, if you don’t have a strong stomach due to volatility or general risk, you start to get a little hairy. If you’re a very aggressive investor, then maybe an allocation of as much as 10% is acceptable, but that’s not for the faint-hearted person.
The story continues