Foreign media reports that as crypto assets become more deeply integrated into mainstream financial markets, more and more investors are no longer viewing them as mere speculative tools, but rather incorporating them into their regular asset allocation. The report cites the views of several advisors and strategists who say that these assets can indeed provide diversification, but only if allocated properly.

45% of respondents held crypto assets for diversified portfolio allocation.

A survey released this month by the U.S. think tank Urban Institute shows that 45% of crypto asset investors cite "diversification" as the primary reason for holding these assets. This percentage is higher than other motivations such as "being optimistic about the future of crypto assets" and "seeking higher returns."

The organization surveyed 3,194 U.S. adults in January of this year. Its definition of crypto asset holders includes those who hold digital assets such as Bitcoin, Ethereum, Solana, XRP, stablecoins, and memes.

The correlation with the S&P 500 remains at a low level.

Veronica Willis, a strategist at Wells Fargo Investment Institute, said the core of diversification is holding assets that don't fluctuate in perfect sync with the market. This way, other assets can act as a buffer when stocks fall.

She noted that over the past 10 years, bonds have had a correlation of approximately 0.02 with the S&P 500, remaining a traditional diversification tool. During the same period, digital assets had a correlation of approximately 0.2 with the S&P 500, higher than bonds but still at a low level.

Jim Ferraioli, head of research at Charles Schwab, stated that crypto assets can serve as a complement to traditional investments in the long run. The report also cited financial advisor Douglas Boneparth as saying that Bitcoin's long-term return trajectory differs from stocks and bonds, thus justifying its inclusion in investment portfolios.

Correlation may increase during market volatility.

However, the report also emphasizes that this dispersive effect does not hold true in all phases. Boneparth states that when market pressures rise rapidly, the correlation between Bitcoin and stocks tends to increase in tandem, as investors sell off more liquid risk assets.

Willis also points out that crypto assets are often classified as high-risk assets during large-scale sell-offs and may therefore fall along with stocks. This means that investors should not use them as their sole diversification tool.

Morningstar strategist Amy Arnott previously noted that the correlation between assets changes over time. She wrote that over the past 10 years ending April 2025, Bitcoin's correlation with major assets such as stocks, bonds, real estate, gold, and commodities was generally below 0.4; however, looking at the nearly 3-year period ending April 2025, Bitcoin's correlation with US stocks has risen to 0.55.

Consultants generally recommend controlling the configuration ratio.

Regarding allocation ratios, the report cites the opinions of several advisors who say that a 1% to 2% allocation to crypto assets is quite common. This is because a small allocation can control overall volatility while preserving potential diversification.

Boneparth states that when Bitcoin allocation exceeds 5%, its volatility may begin to dominate the overall portfolio's risk structure. At that point, it ceases to be merely a diversification tool and becomes the primary bet in the portfolio.