Bitcoin News said in a post on X that BlackRock reviewed rolling 10-year periods through May 2026 and found that adding 1% or 2% Bitcoin to a traditional 60/40 portfolio improved both assumed annualized returns and risk-adjusted performance. In the analysis, the Sharpe ratio for a standard 60/40 portfolio stood at 0.81. That figure rose to 0.90 with a 1% Bitcoin allocation and to 0.96 with a 2% allocation. BlackRock also said a portfolio with 2% Bitcoin generated 1.85% alpha, while its maximum drawdown came in at 20.9%, compared with 20.3% for the traditional 60/40 mix. The firm described Bitcoin as a distinct portfolio diversification tool and a monetary alternative, adding that long-term investors may increasingly consider a modest Bitcoin position outside their conventional holdings.
Odaily reported that Bitcoin News said in a post on X that BlackRock analyzed rolling 10-year periods through May 2026 and found that adding 1% or 2% Bitcoin to a traditional 60/40 portfolio could lift assumed annualized returns and improve risk-adjusted performance.
Sharpe ratio increased with Bitcoin exposure
According to the analysis, the Sharpe ratio of a traditional 60/40 portfolio was 0.81. With a 1% allocation to Bitcoin, the ratio rose to 0.90. With a 2% allocation, it increased to 0.96.
Alpha and drawdown data for the 2% allocation
A portfolio holding 2% Bitcoin also produced 1.85% alpha, while maximum drawdown was 20.9%. By comparison, the maximum drawdown for the traditional 60/40 portfolio was 20.3%.
BlackRock's description of Bitcoin's role
BlackRock said Bitcoin remains a "distinct diversification tool for portfolios and a monetary alternative." The firm added that long-term investors may increasingly consider a modest Bitcoin allocation outside their traditional holdings.
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