The governor of the Central National Bank (CNB) has suggested that allocating approximately 2.5% of the bank's reserves to a Bitcoin ETF could yield returns comparable to increasing U.S. equity exposure from 38% to 50%, but with less additional volatility. This strategic move is seen as a way to enhance returns without significantly increasing risk.
Furthermore, the governor noted that if the bank had invested 5% of its reserves in Bitcoin over the past decade, annual returns could have increased by about 3.5 percentage points. However, this would have also nearly doubled the overall portfolio volatility, highlighting the trade-off between potential gains and increased risk.
CNB Governor Considers Bitcoin ETF for Reserve Allocation
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