Bitcoin and Ether can “significantly improve” portfolio performance: BBVA
Exposure to Bitcoin and Ether, the two largest cryptocurrencies, can significantly enhance the returns of traditional investment portfolios.
According to Philippe Mayer, head of digital and blockchain solutions at BBVA, adding Bitcoin (BTC) and Ether (ETH) to investors' portfolios will “significantly improve” return on investment (ROI).
During a panel held at the Web3 Corporate Innovation Day, BBVA's Meyer said that the company has seen the introduction of smaller digital assets such as Bitcoin or Ethereum to “dramatically improve” its investment portfolios.
“So if you increase your assets under management from 3% to 5% in crypto, it's really making all the difference.”
Mayer says a portfolio allocation of 3% to 5% in cryptocurrency can significantly increase investors' returns.
“Therefore, anyone looking for a better return on their assets should consider this asset class.”
Mayer's comments come amid a crypto bull cycle, with bitcoin's price increasing more than 146% in the past year, trading above the $65,383 mark, according to CoinMarketCap data.
Related: TRUMP token whale sells for $3.7M profit as memecoin starts to decline
Bitcoin will triple the return of the S&P 500 by 2024
In the year By 2024, the price of Bitcoin significantly predates the return of the S&P 500, a stock market index that tracks the performance of the 500 largest publicly listed companies.
Bitcoin's price is up more than 47% year-to-date (YTD), while the S&P 500 is up just 15% — meaning the BTC index has tripled, according to TradingView data.
In amplification, response inconsistency is greater. Over a year-to-date timeframe, BTC is up 147%, while the S&P 500 is up just 24%, meaning BTC has outperformed the index by a factor of six.
However, Bitcoin lost some steam in the short term, falling 2.3% on the monthly chart, while the S&P 500 gained 2.8% over the same time frame.
Related: Bitcoin Price ‘Cluster' Hints More Downsides: Is BTC About to Lose 64K Support?
Bitcoin price continues to be dragged by ETF exits
Bitcoin price is currently in a correction following the slowdown from the United States.
Last week, the US Bitcoin ETF broke a streak of 20 consecutive days of net positive inflows and recorded three days of negative outflows. ETFs saw more than $145 million in spending on June 17, according to data from Farside Investors.
The main reason behind the exit is that ETF investors are not delinquent and are selling below their strike price, said Jag Kuner, head of derivatives at Bitfinex.
Connor told Cointelegraph:
Since we saw similar volatility in late April when BTC peaked above $70,000 with over $1 billion in net inflows, this is a pattern that seems to highlight market activity among ETF investors. It reached $60,000.
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