Bitcoin and Ether Lead the Way: Boosting Portfolio Performance

YEREVAN (CoinChapter.com) — Bitcoin’s price has outperformed the S&P 500 by more than threefold in 2024. Philippe Meyer, head of digital and blockchain solutions at BBVA, stated that exposure to Bitcoin and Ether, the two largest cryptocurrencies, can significantly improve traditional investment portfolios. Adding BTC and ETH to investor portfolios will “greatly improve” the return on investment (ROI).

Meyer Recommends Adding Crypto During Boom

At the Web3 Corporate Innovation Day, Meyer highlighted that introducing a small portion of digital assets like BTC or ETH enhances portfolio performance.

“So if you add something like 3% to 5% of your assets under management in crypto, it’s really making all the difference,”

Meyer said.

He emphasized that a portfolio allocation of 3%–5% in cryptocurrency can boost investor returns.

“So anyone interested in having a better return on his assets should consider this type of asset class.”

Meyer’s comments come during a crypto bull run. Bitcoin’s price has risen more than 146% in the past year, now trading above $65,383, according to CoinMarketCap data.

Bitcoin Outperforms S&P 500 in 2024

Bitcoin’s price has significantly outperformed the S&P 500 in 2024. Since the start of the year, Bitcoin’s price is up over 47% year-to-date (YTD), while the S&P 500 has risen only 15%. This means BTC has outperformed the index by more than threefold, according to TradingView data.

On a yearly timeframe, the difference is even larger. BTC is up 147%, while the S&P 500 has increased by only 24%, meaning BTC has outperformed the index by over sixfold. However, in the short term, BTC has lost some momentum, falling 2.3% on the monthly chart, while the S&P 500 rose 2.8% during the same period.

BTC Price Affected by ETF Outflows

Bitcoin’s price is currently in a correction phase due to slowing inflows from U.S. spot BTC exchange-traded funds (ETFs). Last week, U.S. Bitcoin ETFs broke a streak of 20 consecutive days of net positive inflows, registering three days of negative outflows. ETFs saw over $145 million worth of outflows on June 17, according to Farside Investors data.

Jag Kooner, head of derivatives at Bitfinex, noted that the primary reason behind the outflows is ETF investors lacking conviction and selling below their initial cost basis. Kooner said,

“This is a pattern among ETF investors, where they seem to magnify market moves, as we saw a similar dynamic when there were net inflows in late April of over $1 billion when BTC range highs were above $70,000, followed by significant outflows when range lows approached $60,000.”