Major American institutions are promoting a Bitcoin coin strategy, with Kathy Wood emphasizing the benefits of diversified investment.

In the American financial industry, there is an active movement to incorporate Bitcoin into institutional investors’ portfolios. Ark Invest CEO Kathy Wood advocates for an efficient diversification strategy through coin allocation, citing Bitcoin’s low correlation with other major asset classes. This view aligns with recent investment approaches recommended by major American financial institutions such as Morgan Stanley and Bank of America.

Maximizing Risk-Adjusted Returns Through Coin Allocation

Kathy Wood, in her 2026 market outlook, positions Bitcoin not merely as a speculative asset but as a useful investment tool for investors seeking asset allocations with higher returns per unit of risk. This is based on data provided by Ark Invest.

The most notable feature pointed out by Wood is Bitcoin’s weak correlation with traditional assets. According to data since 2020, the correlation coefficient between Bitcoin and the S&P 500 remains at 0.28. This is significantly lower compared to the correlation coefficient of 0.79 between the S&P 500 and real estate investment trusts (REITs). Furthermore, correlations between Bitcoin and gold, as well as bonds, are also substantially lower than the correlations among these assets. Due to this characteristic, Wood argues that incorporating Bitcoin into a portfolio can help reduce overall risk.

Recommended Allocation Strategies by Major U.S. Institutions

Major U.S. financial institutions have issued supporting recommendations for Bitcoin allocation strategies. Morgan Stanley’s Global Investment Committee recommends a “opportunistic” approach, suggesting a Bitcoin allocation of up to 4% of the portfolio. Bank of America has approved similar allocation levels (up to 4%) for wealth advisors.

Brazil’s largest asset management firm, Itaú Asset Management, recommends a Bitcoin allocation of about 3% as a hedge against foreign exchange and market shocks. CF Benchmarks also positions Bitcoin as a core asset within a portfolio, noting that conservative allocations could provide greater diversification benefits and better returns.

Diverging Industry Views on Bitcoin’s Future

On the other hand, Jeffries strategist Christopher Wood recently reversed his stance on Bitcoin, going from a recommendation to hold to a complete turnaround. He added Bitcoin to his model portfolio at the end of 2020 and increased exposure to 10% in 2021, but in mid-January of this year, he shifted his allocation to gold. His reasoning is that advances in quantum computing technology could threaten Bitcoin’s blockchain security and diminish its appeal as a long-term store of value.

Despite these differing opinions, the majority of mainstream U.S. financial institutions continue to regard Bitcoin as a core asset among coins. Regardless of future price movements from the current Bitcoin price (~$78,100), the movement of institutional investors to incorporate Bitcoin into portfolios indicates a maturing of the crypto asset market. It is worth paying close attention to how strategic recommendations from industry leaders like Kathy Wood will influence the future market structure.