Diversified risk-return
Diversified risk-return: Adding bitcoin to a portfolio could help diversify and potentially enhance the risk-return profile of investment portfolios, due to its uncorrelated return behaviour with other major asset classes.
When Bitcoin was first presented to the world, in the rubble of the 2007/08 financial crisis, it had the support of just a handful of enthusiasts. However, over a decade later it has become the largest decentralised payments platform, boasting over 18 million monthly active users1, and facilitating the transfer of over 700 billion USD per month2.
This disruptive technology has evolved into its own asset class entirely. Representing one of the best performing assets of the last decade, bitcoin has reached mainstream adoption and now finds itself alongside equity, fixed income, commodities, and other traditional asset classes in some portfolios. Its benefits can be realised in its low correlation to traditional assets, adding diversification and potentially an enhanced risk-return profile for the overall portfolio.
The WisdomTree Physical Bitcoin Exchange-Traded Product (ETP) gives investors access to this exciting new asset class in a simple, secure and low-cost way through regulated, major European markets.
