What influence has bitcoin had on a diversified portfolio’s risk-adjusted returns?
In this newly updated study, the Bitwise research team evaluates the historical impact of adding bitcoin to a traditional 60/40 stocks/bonds portfolio. Drawing on comprehensive data from nearly a decade of bitcoin returns, the study examines a wide variety of rebalancing strategies, allocation sizes, and holding periods.
The findings are remarkable.
Assuming quarterly rebalancing, bitcoin would have contributed positively to a diversified portfolio’s returns in 70% of one-year periods, 94% of two-year periods, and 100% of three-year periods since 2014. The study also highlights bitcoin’s counterintuitive influence on portfolio risk metrics and addresses three key questions investors should ask when considering a bitcoin allocation.Read White Paper
Based in San Francisco, Bitwise is one of the largest and fastest-growing crypto asset managers, offering both index and active strategies across a wide array of investment vehicles. The firm is known for creating the world’s largest crypto index fund (OTCQX: BITW), a suite of crypto-focused equity and futures ETFs, and investment products that span Bitcoin, Ethereum, DeFi, NFTs, and the Metaverse. Bitwise focuses on partnering with financial advisors and investment professionals to provide quality education and research. The team at Bitwise combines expertise in technology with decades of experience in traditional asset management and indexing, coming from firms including BlackRock, Blackstone, Meta, and Google, as well as the U.S. Attorney’s Office. Bitwise is backed by leading institutional investors and asset management executives, and has been profiled in Institutional Investor, CNBC, Barron’s, Bloomberg, and The Wall Street Journal.