Bitcoin is largely unregulated, “very volatile,” difficult to hold — and should be included in institutional investors’ portfolios, according to a research paper by a hedge fund consultant and pension fund investor.

The case for investing in Bitcoin comes from Jim Kyung-Soo Liew, a finance professor at Johns Hopkins’ Carey Business School and chief executive officer of SoKat Consulting, and Levar Hewlett, a quantitative risk management associate at the Maryland State Retirement and Pension System. In a paperposted last month on research database SSRN, the authors pointed to the cryptocurrency’s “unique diversification benefits” and “attractive” risk-return profile.

  Institutional Investor