Corporate investments in cryptoassets: Allocation, hedging, and risk management strategies

Abstract

Aim. The work aimed to examine modern approaches to investing in cryptoassets, as well as the prospects, benefits and implications of corporate investments in these digital currencies. Objectives. The work seeks to analyze the standpoints of academic researchers regarding the use of cryptoassets for adaptation in the corporate sector; to identify key risks; and to determine the least risky investment strategies for the portfolio formation.
Methods. The study employed the results of research by scientists and experts in the field of risk management and financial asset management, along with general scientific research and cognitive methods.
Results. It was established that the optimal share of cryptoassets in a corporate portfolio varies depending on courage to risk, industry specifics, and investment horizon. Empirical data confirms that even a small allocation (1 to 5%) to highly liquid cryptoassets such as Bitcoin (BTC) and Ethereum (ETH) can improve overall portfolio returns over the long term due to their low correlation with traditional asset classes in certain periods. Companies in the technology and financial sectors, which have the expertise to manage the associated operational and cyber risks, are showing the greatest interest in cryptoassets.
Conclusions. Regulatory uncertainty is the main obstacle. Unclear legal status and taxation deter institutional investors, despite the recognition of cryptoassets as property. High operational risks require significant investments in secure infrastructure (cold storage, smart contract auditing), which increases costs. The dual nature of cryptoassets determines two strategies for their use, namely speculative (for capital growth) and as “digital gold” (for hedging against inflation). The optimal strategy is a hybrid one combining portfolio diversification through a combination of traditional assets (including gold and stocks) and crypto assets to mitigate risks. A key integration tool is institutional products (ETFs, stock mutual funds), which provide market exposure while minimizing direct ownership risks.