More Return With Less Risk?

By Matt Hougan | CIO, Bitwise Asset Management
June 5, 2025

Can adding bitcoin to your portfolio help manage your overall risk?

Bitcoin is a highly volatile asset. Using the most common measure of volatility, it’s about three or four times as volatile as the S&P 500 Index.

This doesn’t mean, however, that adding bitcoin to a portfolio makes the portfolio significantly more volatile. As bitcoin proponents like me love to point out: Because bitcoin has a low correlation to both stocks and bonds, adding it to portfolios has historically boosted returns without significantly increasing risk.

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