Investors who added 10% to Bitcoin (BTC) to their “60/40 Portfolio” strategy have earned 90% risk-adjusted returns over the past 12 months, surpassing the 51% return on gold over the same period.
In Posted on June 16th Through X, Profile Eco-Inometrics highlighted BTC’s performance through June 13th, charting the results against Total Return. The 60/40 portfolio is a strategy in which investors allocate 60% of the portfolio’s assets to stocks and 40% to fixed income equipment.
The Pure Equities Index Fund achieved approximately 12% with a risk-adjusted ratio of 0.55. Adding bonds reduced the return to about 8%, leaving the risk metric at close to 0.45. Relocating 10 bond points into gold pushed the ratio to 0.62, increasing the return to 12%.
Meanwhile, the same replacement with Bitcoin has led to the ratio rise above 0.80 to 14%. This publication counted only negative side deviations and set a risk-free rate to zero.
Fidelity sees portfolio evolve
Fidelity Digital Assets Researcher Chris Kuiper and Fidelity Investments Macro Director Jurrien Timmer also highlighted the importance of Bitcoin in modern portfolio construction. New episodes of Value Exchange.
Kuiper said investors are currently facing deglobalization, sustained inflation and policy uncertainty that undermine the old allocation playbook.
Timer added:
“The current situation we have known for decades faces a world order of trade.”
Both claimed that the portfolio may require a fresh, valuable store that works outside of the sovereign system.
Kuiper tracked the annual growth of Bonds nominal compounds from just 1% to 2% over the past decade, focusing on the actual drawdown that reached 55%. Timmer recalled that in 2022 the Treasury Department “started bringing storms from the Storm ports.”
These results prompted the pair to consider which macro assets could fill the role of hedges that once concluded the bond. Their answer pointed out that Bitcoin is the rarest digital assets that are most important.
Bonds are becoming weaker
Kuiper has labeled Bitcoin with network assets where volatility often works in the owner’s advantage. He cited internal modelling that shows that prices grow six times with every 40% increase in network age.
Timmer is built on that framework and argues that global money supply growth should increase the demand for non-sorber rarity. Both researchers observed that institutional adoption continues to deepen liquidity and smoothly execute despite the difficulty of quantifying in real time.
Eco-Inometric comparisons with gold enhance that view. The allocation, which is in the same size and funded from the same bond sleeve, provided a significantly lower upgrade to risk-adjusted performance despite Gold’s long tenure.
The narrative of asset classes commanding considerations along with precious metals and inflation-protected securities as investors build durable multi-asset portfolios is consistent with Bitcoin outperformance, both on the axis of return and on the lower side.
