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21 sats \ 0 replies \ @Fundamentals 26 Jul 2023 \ on: BlackRock is telling its clients the optimal BTC allocation is 84.9% bitcoin
There's no portfolio construction model that would allow Bitcoin to have more than a 5% allocation without a constraint.
You have to understand what "high Sharpe ratio" asset classes do to portfolio optimization models.
These models are garbage and we can be sure Blackrock will advise nobody in this manner.
But we were meant to see this report for a reason - thats where the signal lives.