The Governor of the Czech National Bank (CNB) has suggested reallocating 2.5% of the bank's reserves to Bitcoin ETFs instead of increasing the U.S. stock allocation from 38% to 50%. The governor noted that the expected returns of both options are similar, but Bitcoin offers less additional volatility. Analysis indicates that if 5% of the bank's reserves had been allocated to Bitcoin over the past decade, the annualized return would have increased by approximately 3.5 percentage points, although overall volatility would have doubled.
Last month, the CNB announced the creation of a $1 million experimental digital asset portfolio, which includes Bitcoin, USD stablecoins, and a tokenized deposit.
Czech Central Bank Considers Bitcoin ETF for Reserves
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