The Bloomberg Galaxy Crypto and DeFi indexes have outperformed the S&P 500 by over 200%, forcing money managers to consider adding cryptocurrencies to their portfolios.
Asset managers are stuck on whether to include crypto in their portfolio despite looking inclined to the conventional 60% and 40% allocation to equities and bonds, respectively.
The launch of the U.S. Bitcoin Strategy ETF countered the recent ban of cryptocurrencies in China, giving more confidence to investors.
Despite the high returns, crypto assets come with high volatility, with declines of 50% having been posted. Investors have considered the dips as an opportunity to buy.