Traditional Investing & Portfolio Theory

Does crypto reduce or increase portfolio diversification?

Crypto can add diversification to a portfolio when its returns show low correlation with existing holdings, but the effect varies because correlations shift over time, sometimes rising sharply during market stress. It is not a permanent diversifier. For example, crypto may move independently of equities in calm periods yet fall alongside them in a broad sell-off, reducing the benefit when it is most needed. Sizing the allocation matters. Qatobit offers research-led, curated QSI crypto indices with documented methodology so investors can study how crypto behaves before adding it. You can read the construction details first.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.