The Case for Crypto in an Institutional Portfolio

San Francisco • August 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.


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  • Matt Hougan

    Matt Hougan

    Chief Investment Officer
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