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Crypto's role in investment diversification strengthens
Crypto's role in investment diversification strengthens

Research conducted by Grayscale found that crypto, which has recently gained acceptance in traditional finance, can be an important tool for portfolio diversification.

The research pointed out that a 5% allocation to crypto in an investment portfolio can help maximize risk-adjusted returns.

Investment portfolio diversification stands out among the methods that investors who want to minimize their risks and increase their returns should apply. Including investment instruments that react variably to different macro, geopolitical and micro events and have low correlations with each other in the portfolio in various proportions increases the potential to prevent possible losses in unexpected situations. A study conducted by Grayscale reveals that cryptocurrencies can also be an important tool in portfolio diversification and risk management.

Even a 5% stake helps mitigate risks

A study by Grayscale, a US-based investment advisory and asset management firm, showed that crypto assets, which are currently a more volatile instrument, can nevertheless be an important risk hedge. The research pointed out that a 5% allocation to crypto in an investment portfolio can help maximize risk-adjusted returns.

Mehmet Çamır, Chairman of the Board of OKX TR, said, "Allocating a certain amount of space to crypto according to expectations has the potential to contribute to the overall return of the portfolio. Conscious diversification without forgetting that crypto assets are risky assets offers the opportunity to benefit from the rallies of cryptocurrencies that respond to market developments 24/7. In the traditional investment approach, a 60/40 ratio is used, with 60% in stocks and 40% in bonds. As digital access to all investment instruments becomes easier, crypto is also gaining more and more in portfolios."

Crypto intertwines with traditional finance 

Mehmet Çamır reminded that the first approval of Ethereum-based spot exchange traded funds was made in the US in recent weeks and said, "This development, which occurred unexpectedly fast for the ecosystem, proved that crypto assets were recognized by traditional markets, especially Wall Street, after the spot Bitcoin ETFs approved in early 2024. As the regulatory framework settles in around the world, asset management firms managing billions of dollars are developing new investment products to meet investors' needs. These products are offered as exchange-traded products that are much easier to access. For example, investors can invest directly in funds holding Bitcoin, futures on assets such as Ethereum, or funds linked to other cryptocurrencies such as Solana or Ripple. In the first week of June, for example, there were net inflows of $2 billion into all exchange-traded products related to digital assets. This is an indication that crypto and traditional finance are intertwined and crypto is accepted as a diversification tool by investors."

We see crypto as "self-investment" 

Mehmet Çamır, Chairman of the Board of Directors of OKX TR, stated that as OKX TR, they have brought the global vision of one of the world's largest stock exchanges to the Turkish market with a local approach and local structuring, and concluded his evaluations with the following statements: "The way to be prepared for all unexpected conditions is to develop in every sense. Conscious steps to be taken today in financial literacy and savings awareness benefit the person who takes the step and his/her environment in the medium and long term. At OKX TR, we advocate a lifelong culture rather than short-term actions. For this reason, we periodically come together with our community to explain this approach. We held the first of our 'Invest in Yourself' themed community meetings in Istanbul on June 12. We will continue such events all around Turkey, where we aim to develop the right approach to crypto and digital assets and to provide a perspective to make the right investment decisions with the right risk appetite today."

Contact: Tülay Genç | [email protected] | +31 30 799 6022

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