According to the central bank governor, allocating a small portion of reserves to Bitcoin ETFs could meaningfully enhance portfolio returns.
The governor shared notable insights on how Bitcoin ETFs might fit into reserve management as part of an ongoing digital asset pilot program. He noted that assigning roughly two and a half percent of reserves to these instruments could generate returns similar to significantly increasing equity exposure, while adding less incremental volatility.
He also highlighted a backward-looking simulation showing that if five percent of the portfolio had been allocated to Bitcoin over the past decade, annual performance would have been about three and a half percentage points higher, although overall volatility would have nearly doubled. He emphasized the importance of balancing digital assets’ high return potential with long-term risk management considerations.
These remarks follow the central bank’s launch of a one-million-dollar digital asset portfolio composed of Bitcoin, a USD-pegged stable value asset, and a tokenized deposit. Results from the pilot are expected to be shared over the next few years, and the initiative is viewed as one of the most comprehensive digital asset experiments among regional central banks.
