Exposure to the top two cryptocurrencies, Bitcoin and Ether, can significantly enhance the returns of traditional investment portfolios, according to Philippe Meyer, the head of digital and blockchain solutions at BBVA.
Meyer mentioned during a panel at the Web3 Corporate Innovation Day that incorporating a small percentage of digital assets such as Bitcoin or Ether can greatly enhance the performance of investment portfolios. He suggested that allocating 3% to 5% of a portfolio to cryptocurrencies can lead to substantial improvements in investor returns.
These comments from Meyer come at a time when the crypto market is experiencing a bull cycle, with Bitcoin’s price soaring over 146% in the past year, surpassing the $65,383 mark, as per CoinMarketCap data.
In 2024, Bitcoin’s price has significantly outperformed the S&P 500, a stock market index tracking the performance of the 500 largest publicly listed companies. Year-to-date, Bitcoin’s price has surged over 47%, while the S&P 500 has only seen a 15% increase, according to TradingView data. This means that Bitcoin has outperformed the index by more than threefold.
Looking at the yearly timeframe, Bitcoin has seen a 147% increase, while the S&P 500 has only risen by 24%, showcasing Bitcoin’s outperformance by over sixfold. However, in the short term, Bitcoin has experienced a 2.3% decline on the monthly chart, while the S&P 500 has risen by 2.8% during the same period.
Bitcoin’s price is currently undergoing a correction due to a decrease in inflows from U.S. spot Bitcoin exchange-traded funds (ETFs). Recently, the U.S. Bitcoin ETFs recorded three days of negative outflows after 20 consecutive days of net positive inflows, with over $145 million worth of outflows on June 17, as reported by Farside Investors data.
Jag Kooner, the head of derivatives at Bitfinex, stated that the primary reason for these outflows is ETF investors lacking conviction and selling below their initial cost basis.
In other news, Roaring Kitty’s GME shares hit $1 billion, Bitcoin open interest surges, and more updates can be found in Hodler’s Digest from June 2-8.