Bitcoin’s Role in a Traditional Portfolio
San Francisco • Apr 1, 2025
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 over 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 74% of one-year periods, 93% 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 PaperBitwise Asset Management is a global crypto asset manager with more than $15 billion in client assets and a suite of over 30 investment products spanning ETFs, separately managed accounts, private funds, hedge fund strategies, and staking. The firm has an eight-year track record and today serves more than 4,000 private wealth teams, RIAs, family offices and institutional investors as well as 15 banks and broker-dealers. The Bitwise team of over 125 technology and investment professionals is backed by leading institutional investors and has offices in San Francisco, New York, and London.
