Bitcoin and Ethereum have emerged as the most profitable assets in the first half of 2024.
The cryptocurrencies have outperformed various traditional investments, including the Nasdaq, S&P 500, oil, gold, the U.S. dollar, and government bonds.
Bitcoin and Ethereum Lead Asset Classes in 2024
According to a July 1 X post by Matrixport, â2024 is halfway through, and as we enter the third quarter of the year, Ethereum and Bitcoin are once again leading the way among other asset classes.â
#Matrixport Today-Jul 1: #Crypto Is The Best Asset Class YtD#BTC #ETH #cryptocurrency pic.twitter.com/L8HxDwFRvP
â Matrixport Official English (@Matrixport_EN) July 1, 2024
According to Matrixport, the approval of the spot Bitcoin ETFs in January has been an important factor, eliminating excuses for asset managers to exclude Bitcoin from their portfolios. They emphasized that BTC is once again the best-performing asset so far this year.
Supporting this viewpoint, Philippe Meyer from BBVA, during a panel at the Web3 Corporate Innovation Day, said that the firm had observed that introducing a small portion of digital assets like Bitcoin or Ether is âgreatly improving the performanceâ of investment portfolios.
He noted
âSo if you add something like 3% to 5% of your assets under management in crypto itâs really making all the difference.â
According to Matrixport, in 2024, Bitcoinâs price has dramatically outpaced the S&P 500. Since the beginning of the year, Bitcoinâs price has surged over 46% year-to-date (YTD), compared to the S&P 500âs 15% rise, indicating that Bitcoin has outperformed the index by more than three times.
Bitcoinâs Annualized Returns Outshine Major Asset Classes
Cathie Woodâs ARK Invest, in its annual Big Ideas report for 2024 examined the performance of various major asset classes over different time periods.
The report revealed that over various time periods spanning seven years, Bitcoinâs annualized returns were 44% when compared to the average 5.7% return of other major asset classes, including gold, commodities, real estate, bonds, equities, and emerging markets.
Excluding the downturn in 2022, Bitcoinâs performance between 2011 and 2021 was unmatched, delivering annualized returns of 230%, compared to the S&P 500âs 14%.
The report also found that the optimal allocation of Bitcoin in a portfolio has been steadily rising, with it increasing from 1% in 2017 to just under 5% in 2021. Given Bitcoinâs performance in 2023, when it increased in value by over 150%, the optimal allocation has now increased to 19.4%.
The post Better than the Rest: Bitcoin is the Best Investment so Far in 2024 (Report) appeared first on CryptoPotato.