Bitcoin Now Makes Up 85% of Some Portfolios, Up From 2%

A 2% bet in bitcoin, left untouched for over 10 years, now accounts for nearly 85% of the average Fundstrat client’s portfolio. This is the story Tom Lee tells in an interview with Wealthion published on September 11, 2026. A spectacular figure, certainly. Especially since it says a lot about the power of compounding crypto assets over time. Nevertheless, it also highlights a serious concentration problem.

How did a 2% crypto bet in bitcoin exceed 85%?

It all starts with a measured decision. Many institutional investors allocate a tiny fraction of their capital to the market’s leading crypto. The initial idea? To be exposed to a powerful emerging technology without risking the rest of their holdings.

Ten years later, a small marginal 2% stake in bitcoin transforms over cycles into a significant investment. This now represents up to 85% of the total value of some accounts. A performance that Fundstrat’s co-founder summarizes in a simple sentence:

They bought 2%, and bitcoin rose a lot.

In other words, the increase from 2% to over 85% results from bitcoin’s rise and not from additional deposits. The calculation actually shows the scale of the phenomenon. In an initial $100 crypto portfolio, $2 placed in BTC must climb to about $555 to represent 85% of a total where the remaining $98 have not moved. In other words, the implicit return approaches 278 times the initial stake.

This reconstruction, however, remains theoretical. In its official presentation, Fundstrat provides no exact purchase date, no audited statements, and no performance of other assets. Other factors may therefore significantly alter the result:

• withdrawals;
• contributions;
• sales;
• fluctuations in stocks and bonds.

Tom Lee’s spectacular figure hides a more surprising reality

According to Tom Lee, between 80% and 90% of investors still do not expose themselves to bitcoin. Yet, they hold gold or stocks in abundance. At the same time, many accept investing in technologies they do not fully understand. This is notably the case with electric vehicles and large AI models. Bitcoin, however, remains an area of discomfort for them.

In his interview with Wealthion, Tom Lee therefore brings the debate back to a simple question:

Do they want to be right, or do they want to make money?

According to some crypto analysts, a winning position can become dangerously dominant. Without rebalancing, the rise in the bitcoin price automatically increases crypto exposure. But not only that! It also reduces the diversification originally sought. At 85%, the account’s behavior depends almost entirely on a single asset, whereas the initial 2% allocation was precisely meant to limit loss in case of failure.

In this particular case, the difference between performance and prudence therefore matters a lot. In December 2024, BlackRock considered that a weighting of 1% to 2% could suit investors with appropriate governance and risk tolerance. The manager however issued an important warning: beyond 2%, bitcoin’s share in total risk would become disproportionate compared to a large tech stock.

This contrast does not refute Lee’s story. It changes its reading. An exceptional rise rewards patience. However, a weighting of 85% also exposes to sharp crypto market downturns.

Tom Lee foresees 12 bullish months for crypto and bitcoin

Tom Lee estimates that 80% to 90% of retail investors still hold no crypto. He presents this low participation as a reserve of potential demand for bitcoin and other digital assets. However, this is neither a published survey nor an independent measure. The percentage is from his own estimate during the interview.

His scenario also relies on a cleanup of leverage. Lee indeed describes the current period as the fourth crypto winter (or bear market). According to him, the liquidations in October and those after the start of the war with Iran eliminated some leveraged positions. He now sees leverage reappearing in Korea and compares this movement to previous crypto cycle lows.

Stocks linked to digital assets reinforce his optimism. According to him, four of the 21 best performances in the Russell 1000 in Q3 come from crypto companies. Upstream, BitMine soared 99%.

Lee adds a long-term bet on institutional adoption. If $100 trillion of assets migrate to tokenization, capturing 1% of that activity would represent, by his calculation, $1 trillion in net revenue.

In any case, this spectacular shift proves that bitcoin is much more than a simple asset. It now constitutes the central engine of modern financial performance. Will investors finally adapt their theoretical frameworks to this crypto reality? Will they attempt to forcibly contain the growth of a digital asset that refuses to be locked into obsolete ratios? The answer in the coming years!