Charles Schwab's research on cryptocurrency investment methods states that even small allocations can increase risk.

CoinFeed reported on April 8th, citing The Block, that Charles Schwab released a research report exploring cryptocurrency investment approaches, pointing out that there is no "correct" fixed allocation ratio, and decisions depend on the investor's goals, risk tolerance, and outlook. The report proposes two main approaches: a return-based approach (considering expected returns, volatility, and correlations with other assets) and a risk-based approach (focusing on the degree of risk that cryptocurrencies add to the overall portfolio). Schwab stated that even a small increase in crypto asset allocation will make portfolio performance increasingly attributable to cryptocurrency performance. In conservative, neutral, and aggressive portfolios, assuming a 15% annual return for Bitcoin, the allocation ratios are approximately 1%, 6.6%, and 8.8%, respectively. Ethereum, due to its higher volatility, has a smaller allocation ratio. The report notes that cryptocurrencies can provide some diversification returns to traditional asset portfolios.