JPMorgan’s long-term assumptions for Bitcoin are a 10% annualized return and 55% annualized volatility.
In the set of assumptions disclosed by Grayscale Head of Research Zach Pandl, U.S. large-cap stocks have a return of 7.5%, private equity 9.8%, a 60/40 stock-bond portfolio 7%, and gold 5.5%. Bitcoin’s 10% is the highest among the listed assets. Bitcoin’s estimated correlation with U.S. large-cap stocks is 33%, but JPMorgan excludes Bitcoin from its core portfolio models because this correlation is unstable, and describes it as a speculative asset.
· Grayscale says portfolio returns depend on how future returns and relationships between assets change.
Seeing the 10% return assumption and 55% volatility, which would you focus on more?
#Bitcoin
In the set of assumptions disclosed by Grayscale Head of Research Zach Pandl, U.S. large-cap stocks have a return of 7.5%, private equity 9.8%, a 60/40 stock-bond portfolio 7%, and gold 5.5%. Bitcoin’s 10% is the highest among the listed assets. Bitcoin’s estimated correlation with U.S. large-cap stocks is 33%, but JPMorgan excludes Bitcoin from its core portfolio models because this correlation is unstable, and describes it as a speculative asset.
· Grayscale says portfolio returns depend on how future returns and relationships between assets change.
Seeing the 10% return assumption and 55% volatility, which would you focus on more?
#Bitcoin
