Key Takeaways
- • Bitwise Asset Management's research team found that adding bitcoin to a traditional 60/40 stocks/bonds portfolio contributed positively to returns in 76% of one-year periods, 94% of two-year periods, and 100% of three-year periods since 2014, assuming quarterly rebalancing.
- • The study tested a range of rebalancing strategies, allocation sizes, and holding periods using more than a decade of bitcoin return data.
- • The research also examines bitcoin's counterintuitive effect on portfolio risk metrics, a finding relevant to allocators weighing risk-adjusted return impact.
- • Bitwise, a crypto asset manager with $9 billion in client assets and over 70 products, published the updated study as a white paper.
Summary
Bitwise Asset Management has published an updated study evaluating the historical effect of adding bitcoin to a traditional 60/40 stocks-and-bonds portfolio on risk-adjusted returns. Drawing on more than a decade of bitcoin return data, the Bitwise research team tested a wide range of rebalancing strategies, allocation sizes, and holding periods.
Assuming quarterly rebalancing, bitcoin would have contributed positively to a diversified portfolio's returns in 76% of one-year periods, 94% of two-year periods, and 100% of three-year periods since 2014, according to the study. The white paper also highlights what the firm describes as a counterintuitive influence of bitcoin on portfolio risk metrics.
The study addresses three key questions investors should consider when evaluating a bitcoin allocation. The full research is available as a white paper on Bitwise's website.
Bitwise describes itself as a global crypto asset manager with $9 billion in client assets and more than 70 investment products spanning ETFs, separately managed accounts, private funds, DeFi strategies, and staking. The firm serves more than 5,500 private wealth teams, RIAs, family offices, and institutional investors, as well as 21 banks and broker-dealers, with offices in San Francisco, New York, and London.
Assuming quarterly rebalancing, bitcoin would have contributed positively to a diversified portfolio's returns in 76% of one-year periods, 94% of two-year periods, and 100% of three-year periods since 2014, according to the study. The white paper also highlights what the firm describes as a counterintuitive influence of bitcoin on portfolio risk metrics.
The study addresses three key questions investors should consider when evaluating a bitcoin allocation. The full research is available as a white paper on Bitwise's website.
Bitwise describes itself as a global crypto asset manager with $9 billion in client assets and more than 70 investment products spanning ETFs, separately managed accounts, private funds, DeFi strategies, and staking. The firm serves more than 5,500 private wealth teams, RIAs, family offices, and institutional investors, as well as 21 banks and broker-dealers, with offices in San Francisco, New York, and London.
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