The latest report from researchers at Crypto.com on crypto asset allocation found that adding Bitcoin (#BTC ) and Ethereum (#ETH ) to traditional investment portfolios improves returns with a modest increase in risk. The work, which spans the past 10 years, found that BTC and ETH outperform assets like the S&P 500, gold, and bonds, increasing average annual portfolio returns by 0.4% to 2.5%.

According to the company's analysts, including up to 5% of cryptocurrency minimally increases portfolio volatility: BTC reduces risk by 1.23%, while ETH, on the contrary, increases it by 4.55%. Looking at the portfolio without digital assets, the researchers showed that the maximum risk-return ratio (Sharpe Ratio) was 0.705, with a return of 9.61% and volatility of 11.61%. However, when adding BTC, this ratio increases to 0.8345 from 10.67%. When including both BTC and ETH, the Sharpe Ratio reaches 0.9539 with a return of 11.43% and volatility of only 10.47%.

The launch of BTC and ETH spot ETFs in the US has opened up a new avenue for institutional investors looking to diversify their portfolios without increasing risk, according to cryptocurrency experts. This highlights the increased interest from both large financial players and retail buyers in digital currencies, which can now act not just as speculative assets, but also as key tools for reducing risks in a volatile market.

As of September 25, 2024, the price of Bitcoin (BTC) is at 63,750, up 5.9% from a week ago. As for Ethereum (ETH), its price reached 2,625, up 12.4% over the same period.