Mr.Arshman

07/13 16:40

Bitwise CIO: Bitcoin Can Boost Returns Without Rai

Bitwise CIO: Bitcoin Can Boost Returns Without Raising Portfolio Risk

Digital asset manager Bitwise’s chief investment officer, Matt Hougan, suggests reallocating portfolios to include bitcoin alongside reduced equity and bond exposure could enhance returns while mitigating risk.

Bitwise CIO Urges Investors to View Bitcoin Through Total Portfolio Lens

The Bitwise analysis shared by the firm’s CIO Matt Hougan covers January 2017 to December 2024 and evaluates how adding bitcoin to a traditional 60/40 stock-bond portfolio affects performance. Using SPY for stocks, AGG for bonds, and bitcoin (BTC) spot prices, the study found a 5%  BTC allocation increased total returns from 107% to 207% over the period, with portfolio volatility rising only marginally from 11.3% to 12.5% standard deviation.

Hougan highlighted that bitcoin’s historically low correlation with traditional assets allows it to diversify ..

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