At a time when an increasing number of investors and financial advisors are considering adding Bitcoin to investment portfolios, FTSE Russell has examined how it has behaved within a blended index portfolio.
Our recent research paper, ”Taming Bitcoin’s mood swings,” examines a number of hypothetical historical scenarios for a portfolio blending Bitcoin with other major asset classes.
In two examples, adding a small allocation to a US large-cap portfolio, as reflected by the Russell 1000® Index, and rebalancing on a quarterly basis, resulted in volatility and maximum drawdowns comparable to those of the Russell 1000 but with excess annual returns over the last five years.
You can now read the full blog post at the link below