Bitcoin and Ether Can Boost Portfolio Returns: BBVA

Adding Bitcoin (BTC) and Ether (ETH) to investment portfolios can significantly improve returns, according to Philippe Meyer, head of digital and blockchain solutions at BBVA. He suggests allocating 3% to 5% of assets under management in crypto to see a noticeable difference. This comes amidst a crypto bull cycle, with Bitcoin's price up over 146% in the past year.

Bitcoin has outperformed the S&P 500 by over threefold in 2024, with Bitcoin rising over 47% YTD compared to the S&P 500's 15% gain. However, Bitcoin has experienced a recent correction due to slowing inflows from U.S. spot Bitcoin ETFs, with ETF investors lacking conviction and selling below their initial cost basis.