Please find below TOBAM’s Research piece: “Bitcoin and Diversification in a Cross-Asset Portfolio”.

Bitcoin has the potential to be adopted as a new standard of value, playing the role of a sort of digital gold in asset allocation, for investors who aim to build a portfolio for the long run.

Recently, this investment hypothesis has been put to the test by diverse statistical and economic arguments. While the exact nature of BTC is still debated, it is becoming increasingly clear that neither “the future of money” nor “a worthless fad” are apt descriptions of what it currently is. Despite its high volatility, and several material drawdowns, the longevity of BTC (13+ year track record) reflects its unique investment characteristics. Between prophets of doom and crypto evangelists, we think there is room for a rational discussion, using all the data available and the usual tools applied to the traditional asset classes.

In this note we address a number of arguments, qualitatively and quantitatively, and we also provide insights into our own research results that convinced us that, for our own cross-asset portfolios, it makes a lot of sense to include Bitcoin as an asset class.

You can request the document here: