How Bitcoin Is Redefining Investment Portfolios
![How Bitcoin Is Redefining Investment Portfolios How Bitcoin Is Redefining Investment Portfolios](https://www.coindesk.com/resizer/cR4058jYa8SCNbMgQqDyhTA0HmY=/800x600/cloudfront-us-east-1.images.arcpublishing.com/coindesk/Y5BVTEDMARH2FPTXBOYUJ3UWPU.jpg)
To address these challenges, investors face a standard menu of options (Exhibit 1). To improve the tradeoff between risk and return in portfolios, they can reallocate to asset classes providing better risk-adjusted returns, lower correlations, or a bit of both. In recent years, for example, certain investors have increased their allocations to alternatives, including illiquid private assets like private equity and real estate. Although this has been a successful approach, these types of vehicles are not available to many individual investors.