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Crypto Asset Allocation1


Coindesk did me a disservice with this blog post: USV’s Fred Wilson Predicts ‘Big’ Cryptocurrency Crash https://t.co/P8085HlhW1 pic.twitter.com/8rVaudYnlA — CoinDesk (@coindesk) September 26, 2017 It made it seem like I was predicting an imminent crash which I was not. But just as bad, it has led to a lot of tweets like this one suggesting that I also said that people should have 10-20% of their net worth in crypto: Interesting viewpoint: @fredwilson believes #cryptocurrencies could represent 10-20% of the allocation strategy for an informed investor https://t.co/0tphYEQ5sG — Jean-Michel Pailhon (@jmpailhon) October 14, 2017 What I did say is that “true believers” in crypto might want to have 10-20% of their net worth in crypto assets. For many of these true believers that would be down from 80-100%. So, what do I think is a reasonable asset allocation to crypto for the average investor? Well to start, as I mentioned in that blog post, The Gotham Gal and I have about 5% of our net worth in crypto assets, across a number of vehicles; direct holdings, USV funds, token funds, etc. We have a fairly diversified crypto portfolio, likely much more diversified than most folks could do on their own. I think that’s likely at the high end of what the average person should have, but I also think its not a ridiculous number for the average person to have. Many endowments, pension funds, etc allocate 3-5% of their portfolio to venture capital. They know its a risky asset but it has the potential for outsized returns. The largest allocation I have seen to venture capital from a big endowment or pension fund is 10%. So that gives you a sense of what sophisticated investors do with risky asset classes. If you had to pin me down on a number, here is where I would end up: young, aggressive risk taker – 10% of net worth in crypto sophisticated investor seeking a high performing portfolio – 5% of net worth in crypto average investor, slightly conservative, but with some appetite for risk – 3% of net worth in crypto retiree seeking to preserve portfolio value and generate income – 0% of net worth in crypto Hopefully this will set the record straight. It makes me very nervous when I see folks tweeting out “advice” that I did not give. http://avc.com/2017/10/crypto-asset-allocation/

Crypto Asset Allocation1


Coindesk did me a disservice with this blog post: USV’s Fred Wilson Predicts ‘Big’ Cryptocurrency Crash https://t.co/P8085HlhW1 pic.twitter.com/8rVaudYnlA — CoinDesk (@coindesk) September 26, 2017 It made it seem like I was predicting an imminent crash which I was not. But just as bad, it has led to a lot of tweets like this one suggesting that I also said that people should have 10-20% of their net worth in crypto: Interesting viewpoint: @fredwilson believes #cryptocurrencies could represent 10-20% of the allocation strategy for an informed investor https://t.co/0tphYEQ5sG — Jean-Michel Pailhon (@jmpailhon) October 14, 2017 What I did say is that “true believers” in crypto might want to have 10-20% of their net worth in crypto assets. For many of these true believers that would be down from 80-100%. So, what do I think is a reasonable asset allocation to crypto for the average investor? Well to start, as I mentioned in that blog post, The Gotham Gal and I have about 5% of our net worth in crypto assets, across a number of vehicles; direct holdings, USV funds, token funds, etc. We have a fairly diversified crypto portfolio, likely much more diversified than most folks could do on their own. I think that’s likely at the high end of what the average person should have, but I also think its not a ridiculous number for the average person to have. Many endowments, pension funds, etc allocate 3-5% of their portfolio to venture capital. They know its a risky asset but it has the potential for outsized returns. The largest allocation I have seen to venture capital from a big endowment or pension fund is 10%. So that gives you a sense of what sophisticated investors do with risky asset classes. If you had to pin me down on a number, here is where I would end up: young, aggressive risk taker – 10% of net worth in crypto sophisticated investor seeking a high performing portfolio – 5% of net worth in crypto average investor, slightly conservative, but with some appetite for risk – 3% of net worth in crypto retiree seeking to preserve portfolio value and generate income – 0% of net worth in crypto Hopefully this will set the record straight. It makes me very nervous when I see folks tweeting out “advice” that I did not give. http://avc.com/2017/10/crypto-asset-allocation/

Crypto Asset Allocation1


Coindesk did me a disservice with this blog post: USV’s Fred Wilson Predicts ‘Big’ Cryptocurrency Crash https://t.co/P8085HlhW1 pic.twitter.com/8rVaudYnlA — CoinDesk (@coindesk) September 26, 2017 It made it seem like I was predicting an imminent crash which I was not. But just as bad, it has led to a lot of tweets like this one suggesting that I also said that people should have 10-20% of their net worth in crypto: Interesting viewpoint: @fredwilson believes #cryptocurrencies could represent 10-20% of the allocation strategy for an informed investor https://t.co/0tphYEQ5sG — Jean-Michel Pailhon (@jmpailhon) October 14, 2017 What I did say is that “true believers” in crypto might want to have 10-20% of their net worth in crypto assets. For many of these true believers that would be down from 80-100%. So, what do I think is a reasonable asset allocation to crypto for the average investor? Well to start, as I mentioned in that blog post, The Gotham Gal and I have about 5% of our net worth in crypto assets, across a number of vehicles; direct holdings, USV funds, token funds, etc. We have a fairly diversified crypto portfolio, likely much more diversified than most folks could do on their own. I think that’s likely at the high end of what the average person should have, but I also think its not a ridiculous number for the average person to have. Many endowments, pension funds, etc allocate 3-5% of their portfolio to venture capital. They know its a risky asset but it has the potential for outsized returns. The largest allocation I have seen to venture capital from a big endowment or pension fund is 10%. So that gives you a sense of what sophisticated investors do with risky asset classes. If you had to pin me down on a number, here is where I would end up: young, aggressive risk taker – 10% of net worth in crypto sophisticated investor seeking a high performing portfolio – 5% of net worth in crypto average investor, slightly conservative, but with some appetite for risk – 3% of net worth in crypto retiree seeking to preserve portfolio value and generate income – 0% of net worth in crypto Hopefully this will set the record straight. It makes me very nervous when I see folks tweeting out “advice” that I did not give. http://avc.com/2017/10/crypto-asset-allocation/

Crypto Asset Allocation1


Coindesk did me a disservice with this blog post: USV’s Fred Wilson Predicts ‘Big’ Cryptocurrency Crash https://t.co/P8085HlhW1 pic.twitter.com/8rVaudYnlA — CoinDesk (@coindesk) September 26, 2017 It made it seem like I was predicting an imminent crash which I was not. But just as bad, it has led to a lot of tweets like this one suggesting that I also said that people should have 10-20% of their net worth in crypto: Interesting viewpoint: @fredwilson believes #cryptocurrencies could represent 10-20% of the allocation strategy for an informed investor https://t.co/0tphYEQ5sG — Jean-Michel Pailhon (@jmpailhon) October 14, 2017 What I did say is that “true believers” in crypto might want to have 10-20% of their net worth in crypto assets. For many of these true believers that would be down from 80-100%. So, what do I think is a reasonable asset allocation to crypto for the average investor? Well to start, as I mentioned in that blog post, The Gotham Gal and I have about 5% of our net worth in crypto assets, across a number of vehicles; direct holdings, USV funds, token funds, etc. We have a fairly diversified crypto portfolio, likely much more diversified than most folks could do on their own. I think that’s likely at the high end of what the average person should have, but I also think its not a ridiculous number for the average person to have. Many endowments, pension funds, etc allocate 3-5% of their portfolio to venture capital. They know its a risky asset but it has the potential for outsized returns. The largest allocation I have seen to venture capital from a big endowment or pension fund is 10%. So that gives you a sense of what sophisticated investors do with risky asset classes. If you had to pin me down on a number, here is where I would end up: young, aggressive risk taker – 10% of net worth in crypto sophisticated investor seeking a high performing portfolio – 5% of net worth in crypto average investor, slightly conservative, but with some appetite for risk – 3% of net worth in crypto retiree seeking to preserve portfolio value and generate income – 0% of net worth in crypto Hopefully this will set the record straight. It makes me very nervous when I see folks tweeting out “advice” that I did not give. http://avc.com/2017/10/crypto-asset-allocation/

Crypto Asset Allocation1


Coindesk did me a disservice with this blog post: USV’s Fred Wilson Predicts ‘Big’ Cryptocurrency Crash https://t.co/P8085HlhW1 pic.twitter.com/8rVaudYnlA — CoinDesk (@coindesk) September 26, 2017 It made it seem like I was predicting an imminent crash which I was not. But just as bad, it has led to a lot of tweets like this one suggesting that I also said that people should have 10-20% of their net worth in crypto: Interesting viewpoint: @fredwilson believes #cryptocurrencies could represent 10-20% of the allocation strategy for an informed investor https://t.co/0tphYEQ5sG — Jean-Michel Pailhon (@jmpailhon) October 14, 2017 What I did say is that “true believers” in crypto might want to have 10-20% of their net worth in crypto assets. For many of these true believers that would be down from 80-100%. So, what do I think is a reasonable asset allocation to crypto for the average investor? Well to start, as I mentioned in that blog post, The Gotham Gal and I have about 5% of our net worth in crypto assets, across a number of vehicles; direct holdings, USV funds, token funds, etc. We have a fairly diversified crypto portfolio, likely much more diversified than most folks could do on their own. I think that’s likely at the high end of what the average person should have, but I also think its not a ridiculous number for the average person to have. Many endowments, pension funds, etc allocate 3-5% of their portfolio to venture capital. They know its a risky asset but it has the potential for outsized returns. The largest allocation I have seen to venture capital from a big endowment or pension fund is 10%. So that gives you a sense of what sophisticated investors do with risky asset classes. If you had to pin me down on a number, here is where I would end up: young, aggressive risk taker – 10% of net worth in crypto sophisticated investor seeking a high performing portfolio – 5% of net worth in crypto average investor, slightly conservative, but with some appetite for risk – 3% of net worth in crypto retiree seeking to preserve portfolio value and generate income – 0% of net worth in crypto Hopefully this will set the record straight. It makes me very nervous when I see folks tweeting out “advice” that I did not give. http://avc.com/2017/10/crypto-asset-allocation/