A claim has emerged that adding a small amount of bitcoin to a traditional 60-40 portfolio steadily improves returns.

On March 4, blockchain outlet The Crypto Basic described the 60-40 portfolio as an investment strategy that allocates 60 percent to stocks and 40 percent to bonds, aiming to secure stability while maintaining growth potential. It said recent interest rate changes and rising market volatility have exposed its limitations, prompting analysis that bitcoin could complement it.

Matt Hougan (맷 호건), chief investment officer at Bitwise, said research he has updated every year since 2018 shows portfolios that include bitcoin perform better. Based on three-year backtests, he said portfolios including bitcoin improved returns by 100 percent compared with the traditional 60-40 portfolio, and over two-year periods they delivered better results with a 93 percent probability.

That is mainly because bitcoin has a low correlation with existing assets and encourages portfolio diversification. For decades, investors have used a stock and bond mix as a balanced strategy. As interest rate changes and increased market volatility have reduced its effectiveness, bitcoin offers a unique return profile. Bitwise said bitcoin shows relatively low correlation compared with stocks and fixed-income assets. It explained that these distinct characteristics create diversification benefits that traditional asset classes cannot provide.

The study said portfolios including bitcoin saw their Sharpe ratio rise and also reduced losses in down markets. It said a 5 percent bitcoin allocation was the most efficient and that a rebalancing strategy is needed to cut assets that have risen and add to those that have fallen. From 2018 to 2024, such portfolios responded more effectively than traditional portfolios to pandemic volatility, inflation pressure and geopolitical uncertainty.

With bitcoin included in portfolios, the market is also changing. Since 2018, the regulatory environment has been put in place, liquidity has expanded and institutional investors have also been actively entering the crypto market. However, the outlet said actual investing requires careful planning on security, taxes and rebalancing strategies, and that using professional services should also be considered.