60/40 Portfolio Sees Improved Annualized Returns and Risk-Adjusted Performance; BlackRock Says Allocating 1% to 2% in Bitcoin Achieves This
2026-08-18 20:34
Odaily News: Bitcoin News posted on X platform that BlackRock's analysis of rolling 10-year cycles through May 2026 found that allocating 1% or 2% Bitcoin to a traditional 60/40 portfolio can boost hypothetical annualized returns and improve risk-adjusted performance.
The analysis shows that the traditional 60/40 portfolio has a Sharpe ratio of 0.81; with a 1% Bitcoin allocation, the Sharpe ratio rises to 0.90; with a 2% Bitcoin allocation, the Sharpe ratio rises to 0.96.
The portfolio with a 2% Bitcoin allocation also generates 1.85% alpha, with a maximum drawdown of 20.9%; the traditional 60/40 portfolio has a maximum drawdown of 20.3%.
BlackRock stated that Bitcoin remains a "unique portfolio diversifier and monetary alternative," and long-term investors may increasingly consider modest Bitcoin allocations beyond traditional holdings.
The analysis shows that the traditional 60/40 portfolio has a Sharpe ratio of 0.81; with a 1% Bitcoin allocation, the Sharpe ratio rises to 0.90; with a 2% Bitcoin allocation, the Sharpe ratio rises to 0.96.
The portfolio with a 2% Bitcoin allocation also generates 1.85% alpha, with a maximum drawdown of 20.9%; the traditional 60/40 portfolio has a maximum drawdown of 20.3%.
BlackRock stated that Bitcoin remains a "unique portfolio diversifier and monetary alternative," and long-term investors may increasingly consider modest Bitcoin allocations beyond traditional holdings.
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