CoinShares releases its August bitcoin research report, recommending a 4% portfolio allocation to bitcoin. The 4% carve-out comes from an otherwise typical 60/40 (60% equities, 40% bonds) portfolio; generic model portfolios do not generally constitute personalized investment advice.
Key research findings:
- CoinShares does not identify particular catalysts, instead pointing to general financialization trends like more order management systems, insured custody solutions, prime brokerages, options, futures, and Exchange Traded Products (ETPs).
- CoinShares claims that the proportion of investors holding bitcoin for more than 12 months has doubled since 2012.
- CoinShares also rationalizes bitcoin's price drop during March's coronavirus panic. Coinshares claims that leverage levels were abnormally high, $500m of bitcoin-collateralized loans were auto-liquidated, and forecasts that "liquidation cascades" will happen again.
- CoinShares manages approximately $700m in assets and sponsors several ETPs listed on European exchanges. Its investments include MenaPay, Paradigm, Blockdaemon, Zabo, Arwen, Globacap, Fold, and Kaiko. Its most frequently interviewed executive is CSO Meltem Demirors.