Analysts at K33 Research said that the U.S.’s approval of a Bitcoin spot ETF will simplify access to Bitcoin exposure and help reduce traditional 60/40 portfolio risks through digital asset diversification.
"We expect diversification and risk-adjusted outperformance to become key entry strategies for various ETF providers," said senior analyst Vetle Lunde and vice president Anders Helseth.
Analysts believe that Bitcoin has proven its worth as a powerful tool for portfolio diversification since 2020. An investor with 1% Bitcoin exposure in a traditional 60/40 portfolio would outperform a portfolio with no Bitcoin exposure by 3.16%. The traditional 60/40 portfolio is a classic investment strategy in which 60% is allocated to stocks and 40% to bonds.
Analysts added that although Bitcoin diversification arguments have weakened during the cryptocurrency market turmoil in 2022, Bitcoin exposure this year will increase the risk adjustment of traditional portfolios due to weakening correlations and strong upside. Return.