Prepared by WisdomTree’s Digital Assets Research team, this report evaluates the role of bitcoin in diversified portfolios.
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Performance Impact: A 2% allocation to bitcoin in a 60/40 global portfolio historically lifted annual returns by 1.3% while adding just 0.19% volatility, yielding an exceptional Information Ratio of 0.97.
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Diversification Benefit: Bitcoin’s low correlations (~20%) with equities and bonds preserve portfolio resilience even during severe crypto drawdowns.
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Risk Management: Systematic rebalancing and stress-testing provide a disciplined framework to capture upside without excessive risk.
What role could a measured bitcoin allocation play in future-proofing institutional portfolios? Read the full report for a deeper analysis.
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