Bitcoin ETF

Bitcoin

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ETF COIN

Exposure to Bitcoin and Ether, the two largest cryptocurrencies, will significantly boost the returns of traditional investment portfolios.
Adding Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) and Ether (<a href="https://cointelegraph.com/ethereum-price" rel="noopener noreferrer nofollow">ETH</a>) to investor portfolios will “greatly improve” the return on investment (ROI), according to Philippe Meyer, head of digital and blockchain solutions at BBVA.
During a panel at the Web3 Corporate Innovation Day, Meyer said that the firm had observed&nbsp;that introducing a small portion of digital assets like Bitcoin or Ether is “greatly improving the performance” of investment portfolios:
<blockquote>
 “So if you add something like 3% to 5% of your assets under management in crypto it’s really making all the difference.”
</blockquote>
Meyer said that a portfolio allocation of 3%–5% in cryptocurrency can significantly boost investor returns:
<blockquote>
 “So anyone interested in having a better return on his assets should consider this type of asset class.”
</blockquote>
Meyer’s comments come amid a crypto bull cycle, with Bitcoin’s price up over 146% over the past year, trading above the $65,383 mark, according to CoinMarketCap <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">data</a>.
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 <img src="https://s3.cointelegraph.com/uploads/2024-06/f46a368b-7fdd-4296-8b79-51dc62166d31.jpeg" alt="" title="">
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 BTC/USDT, 1-year chart. Source: CoinMarketCap
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Related: <a href="https://cointelegraph.com/news/trump-token-whale-sell-3-7-m-profit-memecoin-crash" rel="noopener noreferrer nofollow">TRUMP token whale sells for $3.7M profit as memecoin starts decline</a>
<h2 id="bitcoin-triples-the-return-of-the-sp-500-in-2024">Bitcoin triples the return of the S&amp;P 500 in 2024</h2>
During 2024, Bitcoin’s price has significantly outperformed the return of the S&amp;P 500, the stock market index tracking the performance of the 500 largest publicly listed firms.
Since the start of the year, Bitcoin’s price is up over 47% year-to-date (YTD), while the S&amp;P 500 only rose 15% — meaning that BTC has outperformed the index by over threefold, TradingView <a href="https://www.tradingview.com/chart/3Z94myyP/?symbol=BITSTAMP%3ABTCUSD" target="_blank" rel="noopener noreferrer nofollow">data</a> shows.
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 <img src="https://s3.cointelegraph.com/uploads/2024-06/2aa98ee0-1f37-4776-92d3-8ed22d6a0722.png" alt="" title="">
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 BTC&amp;S&amp;P 500, YTD chart. Source: TradingView
 </figcaption>
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Zooming out, the discrepancy in returns is even larger. On the yearly timeframe, BTC is up 147%, while the S&amp;P 500 is only up 24%, meaning that BTC has outperformed the index by over sixfold.
However, Bitcoin has lost some steam in the short term, falling 2.3% on the monthly chart, while the S&amp;P 500 rose 2.8% during the same timeframe.
Related: <a href="https://cointelegraph.com/news/bitcoin-price-clusters-downside-btc-64k-support" rel="noopener noreferrer nofollow">Bitcoin price ‘clusters’ hint at more downside: Is BTC about to lose $64K support?</a>
<h2 id="bitcoin-s-price-remains-dragged-down-by-etf-outflows">Bitcoin’s price remains dragged down by ETF outflows</h2>
Bitcoin’s price is currently in a correction, following slowing inflows from the United States spot Bitcoin exchange-traded funds (ETFs).
Last week, the U.S. Bitcoin ETFs broke a streak of 20 consecutive days of net positive inflows and registered three days of negative outflows. The ETFs saw over $145 million worth of outflows on June 17, according to Farside Investors <a href="https://farside.co.uk/?p=997" target="_blank" rel="noopener noreferrer nofollow">data</a>.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/0eeac934-1f6f-41c6-91fb-757136ff2c38.png" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin ETF flows. Source: Farside Investors
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The primary reason behind the outflows is ETF investors lacking conviction and selling below their initial cost basis, according to Jag Kooner, head of derivatives at Bitfinex.
Kooner told Cointelegraph:
<blockquote>
 “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.”
</blockquote>
Magazine: <a href="https://cointelegraph.com/magazine/roaring-kittys-shares-1b-gme-rally-btc-open-interest-soars-hodlers-digest-june-2-8/" rel="noopener noreferrer nofollow">Roaring Kitty’s GME shares hit $1B, BTC open interest soars, and other news: Hodler’s Digest, June 2–8</a>

Bitcoin and Ether can ‘greatly improve’ portfolio performance: BBVA

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