JPMorgan Expects Bitcoin to Deliver 10% Annualized Return, Higher Than Other Asset Classes

Odaily reports: Grayscale research director Zach Pandl stated that JPMorgan Asset Management has incorporated Bitcoin into its 2027 long-term investment assumptions, projecting a compound annual return of 10%, higher than other asset classes; Bitcoin's estimated correlation with U.S. large-cap stocks is 33%.

JPMorgan expects Bitcoin's annualized volatility to be 55%, and has excluded Bitcoin from its main portfolio models due to its unstable correlation with other assets. Its long-term assumptions also include a 7.5% return for U.S. large-cap stocks, 9.8% for private equity, 7% for a 60/40 stock-bond portfolio, and 5.5% for gold.

JPMorgan characterizes Bitcoin's investment features as a speculative asset, and notes that its portfolio allocation role is related to monetary easing; adoption, regulation, and liquidity all affect its economic characteristics. Grayscale states that the relevant portfolio returns depend on future returns and changes in relationships between assets. (Bitcoin.com News)