The Case for Crypto in an Institutional Portfolio
San Francisco • Aug 10, 2021
This paper revisits the case for adding crypto assets to a diversified portfolio of stocks and bonds by updating the data in a previous paper.
We consider the impact that different allocations to crypto assets would have had on a Traditional Portfolio consisting of 60% equities and 40% bonds under a myriad of different market regimes. The results show that crypto would have contributed positively to a diversified portfolio’s cumulative and risk-adjusted returns in 100% of three-year periods, 97% of two-year periods, and 77% of one-year periods since 2014, assuming quarterly rebalancing. Crypto has positively impacted portfolios even over periods in which crypto’s price has declined.
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 crypto 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.
