Crypto currencies are a new appearance at the intersection between technology and finance.
Since finance and asset management in particular are relatively entrenched regarding asset
classes it is of particular interest which impact a new asset class would cause on existing
asset allocation models. This work is intended to explore the effect an allocation of crypto
currencies would have on traditional investment portfolios. Due to the current low-interest
rate environment combined with the recent COVID-19 pandemic investors are keen to explore new
or alternative investment opportunities. At the same time crypto currencies are attracting
growing attention and are perceived not only as a currency but also as an asset class.
Therefore exploring if an allocation of crypto currencies could provide advantages to
interested investors and show a new perspective on traditional asset allocation models.