The Old Model Is Broken

Traditional 60/40 portfolios — the gold standard for decades — are struggling.

Why?

Because stocks and bonds are moving more in sync than ever, making it harder to achieve true diversification.

But here’s the opportunity:

If you're wondering how crypto fits into a traditional portfolio — here's the data-driven answer.

The Data Doesn’t Lie

Coinbase ran a study analyzing how different crypto allocations impacted the classic 60/40 portfolio (from April 2019 to March 2024):

👉 Even a 1% allocation increased total return by 6.3%.

👉 At 5%, returns more than doubled — with a significantly higher Sharpe ratio*.

_{*Sharpe Ratio compares the return of an investment considering both performance and volatility (risk). More details here.}

What Does it Mean?

1. Better Returns with Minimal Risk

Bitcoin has outperformed most assets over the last decade.

A small allocation can capture this upside without heavy exposure.

2. Exposure to a New Growth Engine

Crypto is a frontier market — like the early internet or emerging tech.

It's not about inverse correlation — it's about capturing a non-traditional growth trend that stocks and bonds can’t provide.

3. Stronger Risk-Adjusted Returns

The Sharpe ratio (return vs. volatility) nearly doubles with just a 5% crypto slice.

You're not just chasing gains — you’re increasing performance relative to risk.

Adding crypto to your portfolio doesn’t mean becoming a “crypto person.”

It means you're adding a new asset class to your portfolio — with the potential to boost returns and strengthen long-term performance.

You don’t need to be all in.
You just want to be in — strategically.

Here’s What I’ll Show You Next

In the next email, I’ll break down the 3 crypto portfolio strategies I use with clients:

1. The simplest strategy for first-time investors

2. A structure that helps you take profits automatically

3. A model that balances fundamentals with upside potential

None of them require perfect timing.

Just a clear plan — and the discipline to follow it.

👉 Want me to help you build that plan? Book a 1:1 call here.

– Matt