The modern portfolio theory widely used by global institutions indicates that long term asset allocation should be driven by risk adjusted returns on various asset classes and the correlation among them. That said, crypto asset with its super high risk adjusted return is still below optimal allocation level. The reason for this is relatively low participation from traditional investment institutions as the total size of global crypto market is not large enough for any large institution to effectively allocate more than USD 100 million of assets. Also, most traditional institutions are very conservative and tend to move gradually in what might turn out to be a brand-new business line. Banca believes that, as crypto asset explodes in recent years, even if returns eventually come back to more normal levels, crypto assets will occupy a much more important position in the asset pools of global individual and institutional investors. This super trend for massive personal and institutional assets to be moved into crypto world will bring explosive growth for the use of Banca community.
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Saurabh Singhla Technical Enthusiastic and Business Developer on Strategy, Marketing, and Growth. I invest my tech knowledge in Blockchain or ICO startups. Looks at the future with an eye on understanding the global impact of technology on society, business and government. [et_pb_sidebar show_border=”off” _builder_version=”3.0.99″ custom_margin=”|||” custom_padding=”|||” /]