According to Cointelegraph, Bitcoin has been identified as the best-performing asset in terms of returns despite its volatility, as per an analysis by the New York Digital Investment Group (NYDIG). Greg Cipolaro, Global Head of Research at NYDIG, highlighted in a report published on October 11 that Bitcoin stands out for its returns when compared to other asset classes using the Sharpe ratio. This ratio evaluates the performance of an asset relative to its risk by calculating the ratio of excess returns to the volatility of those returns. A higher Sharpe ratio indicates better risk-adjusted performance.Sharpe ratio asset comparisons. Source: NYDIGCipolaro provided Sharpe ratios for various asset classes, including equities and bonds, over different holding periods using monthly total returns to create rolling Sharpe ratios. He concluded that Bitcoin ranks favourably compared to nearly every asset class on every metric over every time frame. Although gold had a slightly higher Sharpe ratio over the past 12 months, Cipolaro noted that the difference was negligible.This analysis challenges a Goldman Sachs note from October 7, which claimed that despite Bitcoin being up 40% year-to-date, its performance was insufficient to compensate for its volatility. Cipolaro argued that the risks Bitcoin investors face are more than compensated for in terms of returns. He also emphasized that while Sharpe ratios are useful for comparing risk-adjusted returns, absolute returns are crucial for meeting financial obligations. Additionally, he pointed out that the Sharpe ratio does not capture all types of risks an investor might face, such as censorship or asset seizure.In a report released earlier in October, NYDIG analysts concluded that Bitcoin remains the best-performing asset so far this year, even after a seasonally weak third quarter. Bitcoin has traded flat over the past day following a tightly range-bound weekend, retreating from an intraday high of $63,150 during late trading on October 13 to trade at $62,560 at the time of publication.
Related Posts
According to Odaily, in response to the recent Radiant Capital security incident, Shen Yu (@bitfish1) questioned the lack of industry-standard safety measures. He asked, ‘Why wasn’t a time-lock (delayed execution…
According to CoinDesk, Hong Kong police have dismantled a cryptocurrency investment scam worth HK$360 million ($46.35 million) operating out of an office in the Hung Hom area. The operation led…
According to Odaily, Tether’s CEO Paolo Ardoino announced on the X platform that the company is hiring for its AI division, Tether Data. This department is focused on advancing AI…
According to Cointelegraph, crypto asset manager Grayscale announced the addition of 35 altcoins to its list of assets under consideration for future investment products. This update, shared in an Oct.…
According to Cointelegraph: The Central Bank of the United Arab Emirates (CBUAE) has granted in-principle approval to AED Stablecoin under its Payment Token Service Regulation framework, positioning the project as…
According to Foresight News, YouTube personality Jimmy Donaldson, known as MrBeast, has been accused of profiting over $10 million through the promotion and subsequent sale of multiple small-cap cryptocurrency tokens.…
According to BlockBeats, data from Token Unlocks indicates that tokens such as ARB, AXS, and others will undergo significant unlocks next week, totaling approximately $220 million in value.The details are…
According to Foresight News, Grayscale has released an in-depth exploration video on SUI, emphasizing its role in driving innovation within the gaming sector. The video focuses on ownership and performance…
According to Finance.sina: In a press conference held by the State Council Information Office on October 12, 2024, Minister of Finance Lan Fuan introduced new fiscal measures aimed at addressing…
According to Odaily, Mt.Gox’s official announcement today revealed that the bankruptcy trustee has nearly completed compensating creditors who have fulfilled the necessary procedures and encountered no issues during the compensation…