With crypto, even a small allocation does some of the heavy lifting.

In addition to potential returns, investors also look to crypto for its diversification benefits. 

A key to smart portfolio building is choosing assets that do not always move in the same direction. Our analysis shows that crypto maintains a relatively low long-duration correlation to global stocks, and has resulted in improved portfolio performance historically. Adding even a small amount to your portfolio can have an impact. 

This is because crypto’s drivers can be different from stocks and bonds.

Think of crypto as a way to avoid putting all your financial eggs in one basket. Because it’s driven by new technology rather than corporate profits, it did and could move to its own beat, independent of the stock market. 

Your allocation will depend on your goals and your risk tolerance, and, as with any investment, sizing it with discipline from rebalancing so you can sleep comfortably at night is a great place to start. 

Crypto in a traditional portfolio

The table below compares a traditional portfolio – made of 60% stocks and 40% bonds – with a more modern portfolio that includes a small amount of crypto. These examples are based on historical data from the last three years to illustrate how different strategies performed.

Interestingly, the portfolios that included crypto recovered faster from their largest price drops. During the market fall triggered by US tariffs in April 2025, the traditional portfolio took 22 days to return to its previous value. In contrast, the portfolios containing bitcoin recovered in just 17 days. This suggests that a small amount of crypto may help a portfolio bounce back more quickly during certain types of market stress.

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