21shares Puts Bitcoin’s Annualized Volatility at 44% in Portfolio Analysis
21shares' analysis shows Bitcoin's annualized volatility at 44% over the past year, with low correlation to gold (4%), U.S. stocks (38%), and real estate (11%). Adding 2-5% digital assets to a 60/40 portfolio improved risk-adjusted returns, positioning Bitcoin as an alternative asset.
How this was made
The 30-second read
Why it matters
The analysis offers new volatility and correlation metrics for Bitcoin, and categorizes Ether and Solana, informing allocation decisions.
Market read
Provides fresh quantitative inputs for crypto‑focused portfolio construction, but no immediate price catalyst.
What to watch
Potential regulatory changes or macro‑economic shifts could alter volatility faster than backtests suggest.
Background
21shares provides a quantitative backtest of adding 2‑5% crypto to a 60/40 portfolio, showing risk‑adjusted return improvement.
Ticker impact
21shares reports Bitcoin's 12‑month annualized volatility at 44% and its 3‑year gold correlation at 4%, new data for traders.
limited pressure as markets adjust volatility expectations
The figure is a fresh analytical estimate, not a price‑moving event.
Solana is described as a higher‑risk growth allocation in the 21shares analysis.
minor effect; traders may adjust position sizing
Again, an analytical view without immediate price move.
Market effects
Highlights crypto as a diversifier, may prompt broader asset‑allocation discussions.
Global relevance; no specific regional effect.
Relevant to investors tracking crypto volatility and portfolio risk.
Counterpoint
Volatility may be overstated; recent price stability could limit impact.
Key entities
- Research Firm21shares
Digital‑asset allocation analyst publishing the volatility and correlation figures.
