How a Small Crypto Investment Can Improve Your Portfolio

In recent years, cryptocurrency has evolved from a fringe investment into a mainstream digital asset class that is increasingly being included in diversified portfolios. For investors looking to enhance their portfolio's risk-adjusted returns, adding a crypto allocation can be a compelling strategy.

By including a small allocation of crypto — let’s say between 2% and 10% — in a diversified portfolio, investors can capture some of these gains. Historical data shows that portfolios with even modest exposure to crypto have experienced an uptick in overall performance.

When analyzing data from 2015 to 2023, portfolios with a small crypto allocation show a Sharpe ratio improvement of 0.5 to 0.8 points compared to traditional portfolios. For instance, a traditional portfolio might have a Sharpe ratio of 0.75, but adding 5% bitcoin can elevate it to around 1.2, signifying an optimized balance between risk and reward.

In conclusion, adding crypto to a portfolio can significantly enhance returns and improve risk-adjusted performance, as evidenced by increased Sharpe ratios. While there is inherent volatility, the proper allocation of this digital asset class can provide a strategic advantage for investors seeking to optimize their risk/return profile.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation.

日本 最新ニュース, 日本 見出し

Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。

Crypto Investment Products See Continued Inflows Despite Slight DipDespite a slight dip from the previous week, global digital asset funds recorded $321 million in inflows last week, marking their second consecutive week of positive growth. US-based funds led the surge with $277 million, followed by Switzerland with $63 million. However, Germany, Sweden, and Canada experienced outflows.
ソース: Crypto_Potato - 🏆 568. / 51 続きを読む »

Dragonfly's Hadick on Crypto Investment OpportunitiesRob Hadick, General Partner at Dragonfly, discusses the investment opportunities in the cryptocurrency and the company's fundraising plans. He speaks with Annabelle Droulers on the sidelines of the 'TOKEN2049' event on 'Bloomberg:The Asia Trade'.
ソース: crypto - 🏆 292. / 63 続きを読む »

Crypto Investment Products Saw $1.2B of Inflows Last Week, Most in 10 Weeks: CoinSharesJamie Crawley is a CoinDesk news reporter based in London.
ソース: CoinDesk - 🏆 291. / 63 続きを読む »

Crypto investment products witness $1.2 billion inflow as monetary policy expectations lingerCoinShares' weekly report on Monday indicates that digital asset investment products recorded inflows totaling $1.2 billion last week after the Securities & Exchange Commission (SEC) approved options trading for Bitcoin ETFs.
ソース: FXStreetNews - 🏆 14. / 72 続きを読む »

Crypto investment products record outflows of $147 million alongside Middle East war tensionBitcoin (BTC) is trading around the $63,000 level on Monday as a CoinShares report reveals that crypto investment products recorded outflows totaling $147 million last week, breaking its three-week inflow streak.
ソース: FXStreetNews - 🏆 14. / 72 続きを読む »

Hong Kong Police Bust Group Running $46M Crypto Investment Scam Using DeepfakesCallan Quinn is a Hong Kong-based news reporter at CoinDesk. She holds more than $1,000 of ETH.
ソース: CoinDesk - 🏆 291. / 63 続きを読む »