The firm notably is steadfast in its long-held belief that Bitcoin and gold are mutually beneficial financial assets; indeed, it reiterated in the quarterly publication dubbed “Inflation Or Prosperity?” published in the European Investment Journal that Bitcoin and gold complement each other: The independent fund anticipates the role of digital stores of value to continue to grow; however, it does not expect Bitcoin to completely replace gold as a store of value in the near future.
Bitcoin & gold an effective investment strategy
The first investment plan of this kind handled by the Incrementum picked a strategic asset allocation of 25% Bitcoin and 75% gold. Thus far, its investment plans track record has produced remarkable investment outcomes that have met or exceeded its high expectations. The firm’s approach has generated a return of 115.5% since the strategy’s launch on February 26, 2020, while gold has gained 10.6% during the same time and Bitcoin has gained 450.2%. After subtracting all costs, the method beat the static asset allocation by 28.6% on average. Furthermore, the wealth and fund management considers that a combined crypto-gold portfolio seems to be especially well suited to manage the so-called rebalancing bonus due to cryptocurrency and gold’s low correlation and significant volatility difference. Combining these two assets considerably decreased risk during the time under consideration, significant since the strategy outperformed gold by a substantial margin throughout the period. The group stated:
Bitcoin as an alternative to gold
As a method of safeguarding their money, an increasing number of fund managers and institutional investors are turning to Bitcoin (BTC) rather than gold. These investors believe cryptocurrency to be a greater store of wealth and inflation hedge than gold. Despite the short-term correction, the cryptocurrency market has seen an inflow of almost $2 trillion over the last 12 months. After years of steady development, Bitcoin has gradually emerged as a viable alternative to gold as a store of wealth in 2021, as seen by the increasing value of Bitcoin. This year, Bitcoin’s ROI has outperformed the returns on major commodities, equities, currencies, and indexes. It’s worth mentioning that the gold ETF outflow in October may have resulted from the newly authorized Bitcoin futures ETF in the United States, which allows investors to speculate on the price of BTC without actually acquiring any of the asset itself. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. [coinbase]
