Korbit Announces 'Virtual Asset Allocation Strategy 2.0 for Institutional Investors'... "Focus on Ethereum"

Korbit Research Center, under the domestic virtual asset (cryptocurrency) exchange Korbit, announced on the 24th that it has published the second asset allocation strategy report for institutional investors, 'Virtual Asset Allocation Strategy 2.0 for Institutional Investors'.

This report has undergone a major update to reflect the rapidly changing market conditions and regulatory changes since the first edition was released in early 2022.

In particular, Korbit Research Center presented Ethereum (ETH) as a key asset for diversifying institutional investors' portfolios. It emphasized that Ethereum has established its status as a strategic asset, not only as a store of value but also as a consumable asset necessary for network operation and as a capital asset through staking rewards.

According to the report, incorporating Bitcoin and Ethereum into the traditional 60:40 (stocks:bonds) portfolio up to 8% increases the Sharpe ratio from the existing 0.87 to 1.74. This analysis supports that these two virtual assets provide an independent risk premium beyond high-risk assets as strategic assets.

The report also includes an analysis of the appropriate proportion within the virtual asset portfolio. Based on quarterly rebalancing, a composition of 73% Bitcoin and 27% Ethereum recorded the highest Sharpe ratio (1.49), showing the most excellent risk-return ratio.

Yoon-Young Choi, head of Korbit Research Center, said, "Including Ether in the portfolio is a strategic investment in future digital financial infrastructure beyond simple asset holding," adding, "Strategic allocation of Bitcoin and Ether shows the potential to improve expected returns relative to risk."