Overview
- Charles Schwab, in a research note published Monday, April 6, says even a 1%–3% bitcoin or ether stake can dominate a portfolio’s risk and raise overall volatility, and the firm calls the assets speculative and not suitable for everyone.
- Using data through Oct. 31, 2025, Schwab reports bitcoin’s annual volatility near 72% with a 73% peak loss, and ether near 98% with an 88% drawdown.
- Schwab outlines two ways to size crypto and shows that in a conservative mix about 1.2% bitcoin or 0.9% ether would already account for 10% of total portfolio risk.
- In a return-based model that assumes 15% yearly gains, the suggested weights run from roughly 1.0% bitcoin in conservative portfolios to 8.8% in aggressive ones, with ether allocations smaller, and the firm says expected returns below 10% do not justify any crypto weight.
- Schwab has opened a waitlist for a Schwab Crypto account to let clients trade bitcoin and ether directly, pending regulatory approval under Charles Schwab Premier Bank, a move that would put it up against Coinbase, Robinhood, and Webull.