While Goldman Sachs did not begin rating bitcoin against global assets until late January, its year-to-date return is more than double that of the next-closest rival.
The storied Wall Street firm Goldman Sachs didn’t begin including bitcoin in its weekly ranking of global asset-class returns until late January, when the largest cryptocurrency quietly rose to the top of the list.
Bitcoin’s (BTC, +7.41%) lead over assets such as stocks, shares, oil, banks, gold, tech stocks, and the euro has expanded since then.
According to Goldman Sachs‘ latest “US Weekly Kickstart” survey, bitcoin’s year-to-date return, at around 70%, was roughly double that of the next-closest rival, the energy sector, at around 35%.
Now that a recent bout of selling in U.S. stocks has brought the Standard & Poor’s 500 Index’s year-to-date return to nearly zero – flat on the year – the similarities could become even more flattering to bitcoin.
Oil prices and real yields have recovered, boosting year-to-date returns for cyclical sectors like energy and financials, which are also trailing bitcoin.
So far this year, crude oil and electricity have a higher risk-adjusted return (Sharpe ratio) than bitcoin.
Growing yields have punished historically protective sectors like consumer staples and utilities, making gold the worst performing asset class year to date.
bBinvestors in crypto and traditional markets as a potential inflation hedge, according to previous CoinDesk reporting, particularly in an era when central banks around the world are injecting trillions of dollars of newly generated capital into financial markets to stimulate coronavirus-ravaged economies. Despite this, gold has lost about 10% this year, leading some market analysts to claim that bitcoin is taking market share from gold.
According to a study, 40 percent of Goldman’s clients have cryptocurrency exposure.
Even though Goldman’s money-management division claimed in a presentation as recently as May 2020 that cryptocurrencies were “not a suitable investment for our clients,” merely a beneficiary of a “mania” worse than the notorious run on Dutch tulips in the 1600s, this is still the case.