Even a small allocation of Bitcoin in a traditional investment fund can be beneficial.
Even a small amount of Bitcoin can make a difference to investment portfolios and even state pension fund managers are starting to take notice.
Jimmy Patronis, the chief financial officer of the State of Florida in the United States, asked the agency that manages the state’s retirement funds to consider investing in Bitcoin, as it has had a “material impact” on traditional investment portfolios’ returns, while also helping reduce their overall volatility.
Patronis, in a letter to the Florida State Board of Administration’s executive director, Chris Spencer, noted that Bitcoin is often labeled “digital gold” and “could help diversify the state’s portfolio” while providing a “secure hedge against the volatility of other major asset classes.”
