Tom Lee Says a 2% Bitcoin Bet Quietly Became an 85% Portfolio

Key Takeaways

• Fundstrat’s original 2% bitcoin allocation grew to more than 85% without clients buying more.
• Tom Lee says 80%-90% of investors still own no crypto as Bitmine jumped 99% in Q3.
• Lee sees a bullish 12 months for crypto as leverage returns and the 4-year cycle turns.

The 2% Bitcoin Bet That Became 85%

Imagine putting $2 out of every $100 in your portfolio into something plenty of people thought was ridiculous, leaving it there for more than a decade, and eventually discovering it had swallowed nearly the entire account. According to Lee, that is essentially what happened to Fundstrat clients who followed the firm’s early bitcoin allocation strategy.

At the time, Fundstrat began advocating a modest 2% position more than a decade ago, when bitcoin traded below $1,000, and skepticism was lurking everywhere.

“Our original recommendation for a 2% position, for the average account for Fundstrat that actually took our advice, is now over 85% of their portfolio,” Lee told Wealthion during an interview released on Friday. “They bought 2% and bitcoin’s gone up a lot in price.” That is the wild part. The clients didn’t keep piling money into bitcoin. An allocation deliberately small enough to limit the damage if the idea went off the rails eventually became the dominant asset simply because bitcoin appreciated so much.