# Korbit Research Advocates Bitcoin Inclusion in Portfolios
SEOUL—Korbit Research Center, led by Director Jung Seok-moon, asserted on Oct. 2 that Bitcoin (BTC) should be included in investment portfolios due to its distinct value drivers compared to traditional asset classes, which result in low price correlation.
In a report titled “Bitcoin as a Store of Value: The Second Chapter,” Korbit Research Center explained that, according to portfolio theory, incorporating assets with low correlations into a portfolio can increase expected returns without additional risk. This principle has been followed by asset management firms worldwide, including South Korea’s national pension fund, for decades.
Korbit also highlighted an analysis by ARK Invest suggesting an optimal Bitcoin allocation rate of 20 percent. ARK Invest recently estimated a 20 percent appropriate allocation of Bitcoin within a diversified portfolio of U.S. stocks, bonds, commodities, and gold. Korbit Research Center recommended a 5 percent Bitcoin allocation for high-risk tolerance investors within a portfolio of South Korean stocks, South Korean bonds, and U.S. stocks.
The research center emphasized that Bitcoin’s role as a long-term investment asset is evident, irrespective of existing portfolio composition or investor risk preferences. They refuted the prevalent belief that Bitcoin is only useful for speculation.
Korbit noted that institutional investors have had exposure to Bitcoin through various methods such as private funds for several years. They projected that the recent listing of a spot Bitcoin ETF optimized for tracking Bitcoin prices on U.S. stock exchanges would accelerate this trend.
Korbit Research Center criticized the South Korean government’s policy of restricting access to Bitcoin ETFs and urged a reconsideration. They contended that while the immediate impact of such restrictions might be subtle, it could result in significant opportunity costs for future generations. The center stressed the importance of enabling easy investment in Bitcoin spot ETFs for institutions like South Korea’s national pension fund.
