Bitwise's analysis reveals that incorporating bitcoin into a diversified portfolio positively impacted returns in 70% of one-year periods, 94% of two-year periods, and 100% of three-year periods since 2014, assuming quarterly rebalancing. A 2.5% allocation to bitcoin, with quarterly rebalancing, would have increased the three-year risk-adjusted return of a traditional 60/40 portfolio by 12 percentage points on average.
The potential benefits of bitcoin extend through BITB, offering investors an attractive opportunity to enhance portfolio diversification. With historical high returns and low correlations to traditional assets, bitcoin becomes an appealing choice. BITB, being a low-cost option in the form of a traditional ETF, allows financial advisors to conveniently expose their clients to the world's largest crypto asset.
BITB stands out with its low fees, at just 0.20% per year and no fees for the first six months. This cost advantage makes it especially appealing for those in self-directed IRAs seeking a more economical alternative for bitcoin exposure. Additionally, BITB's lower expenses and potential to provide exposure without triggering tax events could position it favorably in the over $12 trillion IRA market.
What sets BITB apart is not only its cost-effectiveness but also the consistent client support offered by a nationwide team of over 60 crypto specialists with a six-year track record. Bitwise aims to empower investors through education, insights, and a comprehensive suite of crypto solutions, further enhancing the appeal of BITB for potential investors.