How a Small Crypto Allocation Can Diversify Portfolios and Improve Risk-Adjusted Returns

Crypto markets have seen explosive growth, far outpacing traditional asset classes in terms of returns. For example, bitcoin has provided an annualized return of 230% over the past decade, compared to the S&P 500’s annualized return of about 11%. Ether, another dominant cryptocurrency, also offered triple-digit annual growth rates in its early years. Even with their volatility, these digital assets provide investors with the potential for significantly higher returns, especially during market booms.