In brief


Cryptocurrencies and the effect on the Sharpe Ratio

$107,232.00
-3.76%$2,519.00
-5.16%$2.30
-5.03%$655.44
-4.46%$174.54
-2.78%$0.999784
0.00%$0.225899
-7.72%$0.748803
-7.27%$0.26892
-2.11%$2,517.87
-5.07%$107,295.00
-3.41%$3.60
-6.82%$32.81
-1.29%$3,039.28
-4.49%$15.62
-6.63%$23.09
-8.04%$0.286243
-5.73%$428.25
-3.71%$0.0000143
-7.34%$8.79
-1.35%$0.190754
-6.76%$2.98
-6.14%$95.46
-4.92%$392.39
0.19%$2,519.66
-5.28%$4.56
-7.78%$0.999819
0.01%$5.47
4.61%$2,696.21
-4.91%$1.003
0.40%$0.00001396
-7.62%$0.746289
-9.86%$1.001
0.02%$31.71
-0.32%$107,005.00
-3.93%$255.24
-0.29%$417.84
-10.17%$5.98
-6.85%$2.81
-8.65%$5.36
-5.74%$209.06
-3.44%$52.23
-0.85%$0.936577
-7.86%$1.00
0.00%$0.09519
-5.05%$18.49
-5.98%$5.24
-7.95%$0.106411
-9.21%$33.31
-7.55%$1.17
0.08%$21.30
-2.40%$12.52
-14.33%$0.735173
-3.75%$4.70
-8.78%$0.02802003
-8.24%$0.848933
-3.29%$4.80
-7.75%$0.37133
-10.48%$1.003
0.36%$0.235489
-6.09%$1.35
-10.83%$106,989.00
-3.36%$1.052
0.01%$0.225697
-6.31%$0.39162
-8.53%$2.85
-7.67%$4.42
0.60%$0.00002139
-5.69%$0.993967
-0.80%$2.52
-11.08%$0.557116
-4.82%$4.60
-2.22%$185.95
-1.77%$2,518.79
-5.47%$0.472758
-10.00%$1.45
-6.38%$11.38
-1.05%$0.910925
-9.10%$94.51
-3.60%$2,632.02
-4.65%$0.744332
-8.05%$1.93
-5.15%$12.93
-7.95%$1.25
-3.09%$0.228395
-6.17%$0.01852223
-5.09%$0.643977
-10.13%$2,865.80
-5.03%$4.17
-11.23%$1.001
0.18%$1.12
-5.74%$0.734327
-4.00%$0.069776
-3.32%$107,180.00
-3.47%$0.782835
-4.57%$0.109599
-10.08%$1,627.95
-6.81%$0.00010128
-8.99%$224.68
-3.41%$2,693.29
-4.54%$3.13
-7.41%$1.003
0.38%$0.99936
-0.04%$192.95
-3.29%$0.873542
-9.59%$107,388.00
-3.43%$0.01753407
-8.93%$0.0188992
-9.96%$2,649.31
-4.98%$107,329.00
-4.60%$1.00
-0.01%$657.45
-4.14%$3,353.75
1.45%$0.01290388
-11.24%$0.804367
-4.71%$3,359.66
1.52%$0.853636
-4.52%$0.209623
-9.17%$2,655.66
-4.65%$0.860718
-10.67%$0.134301
-2.10%$47.45
-2.52%$0.309762
-7.84%$2.32
-7.19%$0.555179
-3.35%$22.22
-6.68%$36.72
-7.25%$3.97
-5.13%$0.00000072
-4.75%$12.44
-0.40%$4.28
-7.37%$107,156.00
-2.79%$0.115495
-5.23%$1.92
-9.30%$0.999904
0.02%$2.00
-5.30%$0.408349
-6.13%$0.617179
-6.11%$0.064682
-18.33%$111.17
0.02%$0.997654
-0.00%$2.03
-0.81%$0.01839043
-7.60%$2.22
-9.65%$0.314916
-7.66%$0.226339
-7.33%$1.081
-2.15%$2,511.51
-5.59%$2,510.45
-5.76%$107,033.00
-3.78%$0.525082
-7.14%$2,609.45
-5.16%$2,693.08
-4.88%$0.643176
-8.77%$18.03
-8.59%$0.427549
-9.61%$2,519.22
-5.36%$0.00865161
-10.75%$0.999504
-0.04%$0.600735
-11.87%$0.630097
-11.42%$107,235.00
-3.54%$0.493675
-8.48%$0.15581
-11.78%$7.29
-8.67%$0.00469595
-15.09%$0.051413
0.24%$0.182749
-5.09%$2.86
-9.47%$1.91
-12.45%$6.49
-7.51%$0.090277
-8.82%$0.00000116
-14.81%$0.692877
-6.23%$0.999727
-0.01%$0.00002262
-6.59%$102,234.00
-6.08%$0.411179
-7.50%$0.062258
-0.88%$0.096905
-11.44%$0.00481989
-8.89%$0.176433
-12.94%$0.1666
2.87%$1.10
-0.08%$0.00000043
-4.08%$0.04394726
-6.61%$1.40
-12.25%$1.53
-7.15%$1.52
-10.81%$0.385555
0.03%$32.81
-1.02%$1.095
0.00%$37.14
-3.14%$1.002
0.65%$0.0077051
-6.37%$1.004
0.05%$2,523.93
-4.45%$0.163941
-8.80%$1.23
-10.04%$0.00455832
-5.33%$42.13
-6.53%$0.999485
-0.01%$0.389782
-7.36%$2,671.54
-4.77%$0.01918328
-3.26%$105,490.00
-3.56%$3.02
-7.50%$0.237373
-4.93%$0.999067
-0.13%$0.03611127
-6.94%$0.785036
-10.74%$32.78
-1.19%$133.36
-5.61%$107,040.00
-3.78%$0.00508826
-12.22%$0.00392733
-4.70%$2,770.10
-5.04%$0.831254
-5.02%$0.358485
-7.18%$0.334338
-12.43%$0.00006153
-7.88%$2,744.86
-5.33%$0.300008
-11.82%$0.0000016
-3.10%$1.00
0.07%$19.30
-1.30%$2,509.27
-5.69%$0.999538
-0.03%$22.98
-8.21%$0.224394
-6.94%$0.999531
-0.03%$0.251141
-6.42%$2,528.52
-4.77%$0.681504
-5.82%$0.527404
-1.20%$18.36
-8.68%$2,709.87
-5.68%$2.66
-9.22%$23.46
-6.23%$0.00067715
-6.87%$0.669628
-10.93%$193.27
-3.48%$188.19
-2.92%$0.999677
-0.01%$3.38
-8.07%$2,149.01
-4.06%$0.00
-11.26%$0.00266835
-11.47%Reading
Holding as little as one percent in cryptocurrency can boost returns across any portfolio type, a study by crypto-asset management firm Iconic Funds suggests.
The Frankfurt-based startup is a joint venture between crypto-asset management group Iconic Holding and Cryptology Asset Group, which was founded by legendary entrepreneurs Christian Angermayer and Mike Novogratz. The research, published on Tuesday, set out to examine the impact of cryptocurrencies on traditional and alternative investment portfolios—and it’s surprisingly positive.
“Many investors and institutions are skeptical of Bitcoin and crypto because of its widely publicized volatility,” Iconic Holding CEO Patrick Lowry told Decrypt. “We wanted to present objective information showcasing how, even despite its volatility, the risk-adjusted returns of various portfolio types to crypto assets were still significantly improved by even a one percent allocation to crypto over the observed period.”
The impact of including a crypto index with weights of one percent, three percent, or five percent was examined. Bitcoin, Ethereum, XRP, Litecoin, Tether, Bitcoin Cash, EOS, Binance Coin, Bitcoin SV and Tezos were the cryptocurrencies used for the index.
Central to the study is the so-called Sharpe Ratio. A common measure relating risk and return, it weighs the extent to which a portfolio’s return has been greater than a risk-free asset. The study found “substantial” increases in the Sharpe Ratio across all the portfolio models researchers examined—from a traditional stock and bond portfolio to a pensions fund, assuming a passive investment strategy.
“The Family Office portfolio was undoubtedly impacted the most by a crypto allocation, more than doubling its Sharpe Ratio with a three percent allocation,” said Lowry.
Measured in cumulative returns, the portfolios including cryptocurrencies significantly outperformed the (non-crypto) reference index, in some cases by more than 100%, over the observed time frame (between 2013 and 2019) according to the research.
The annual returns of indexes with five percent held in cryptocurrencies reached double figures, with the highest at almost 15% for a balanced portfolio, comprising stocks, bonds, real estate, gold and commodities.
A future Iconic Funds’ study is planned to examine the correlation of crypto-assets with traditional asset classes.
“We want to put truth to the narrative of Bitcoin/crypto being a ‘non-correlated asset class’ with factual data,” said Lowry. “I suspect the results will not be what people are expecting.”
Public Keys is a weekly roundup from Decrypt that tracks the key publicly traded crypto companies. This week: Worrying details from Coinbase The data breach Coinbase told users and investors about last week has gotten a little more worrying. It’s not that more data has been stolen. But the company filed a disclosure with the Maine Attorney General that included a few key details that were missing from its SEC filing and blog post about the exploit. The breach occurred on December 26, 2024, and w...
The Russian Ministry of Energy is considering offering its now strictly regulated Bitcoin mining industry incentives to move to the north of the country. The move follows Russia slapping a Bitcoin mining ban on ten regions (mainly in the south) in January of this year: Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Lugansk, Zaporizhzhia, and Kherson. Russia to Ban Crypto Mining 'In Some Regions' Due to Electricity Shortages The ban is set to rema...
Kraken will soon offer overseas customers the ability to trade U.S.-listed stocks through the crypto exchange’s platform, the company said in a press release on Thursday. The offering, which covers more than 50 U.S.-listed stocks and exchange-traded funds, will be facilitated through a partnership with Backed, a firm specializing in tokenized securities, using the Solana blockchain to offer so-called xStocks, the company said. Tokenization refers to the process of taking real-world assets, wheth...