Crypto asset manager Grayscale said sector and asset selection could offer different returns beyond bitcoin exposure. In its analysis of crypto sector indexes over three years, bitcoin explained about half the variation in sector returns, while sectors became less correlated. Common market forces remained powerful, and different price behavior across tokens did not ensure protection during declines.
Among the 10 largest non-stablecoin assets, six different cryptocurrencies led quarterly performance over two years; bitcoin led none of those quarters. Grayscale also said bitcoin’s annualized realized volatility was in the mid-40% range as of Oct. 31, but sharp price moves remained a substantial risk.
