Nyheter
A short guide on how to beat the US equity market with Ethereum
• There is a strong case to be made for Ethereum as a substitute for a high-growth tech investment.
• The outperformance of an optimized equity portfolio that includes Ethereum vis-à-vis a NASDAQ 100 benchmark amounted to around 10%-points per year since 2021 without significantly compromising on overall volatility or max drawdown of the pure equity portfolio
• We think that the market has yet to fully discount the performance potential of Ethereum (ETH) especially with regards to the potential price impact via the Ethereum ETF trading launch in the US
Becoming the next “Morningstar”
Equity fund managers are always on the lookout for new investment ideas that may help them to “beat the market”, i.e. outperform their respective equity index/benchmark.
In particular, US equity benchmarks are considered to be one of the best performing and most competitive equity benchmarks worldwide. In recent years, popular strategies have evolved around overweighting high growth quality stocks such as the “FAANGs” or the “Magnificent 7” in order to outperform major US indices like the S&P 500 or the NASDAQ 100.
This report presents a novel approach to structurally outperform a high-growth US equity benchmark like the NASDAQ 100 without compromising too much on risk by adding exposure to one of the fastest growing major cryptoassets – Ethereum.
What is Ethereum?
Ethereum represents a significant evolutionary step in the internet’s development, transitioning from Web1 and Web2 to Web3 or the “Internet of Value.”
Since its inception in 2015, Ethereum has developed a diverse ecosystem of decentralized applications (dApps), notably in Decentralized Finance (DeFi).
In general, Ethereum is expected to dis-intermediate and disrupt the following industries:
• Banking & Payments
• Social Media / Marketing / Gaming
• Infrastructure (tokenisation)
• AI
Ethereum is similar to an app store or tech platform like Android or iOS where decentralized applications can be built on and assets can be transferred as easy as sending an Email.
Ethereum can be considered a new type of asset that covers multiple business reservoirs, extracting value from each via transaction fees/”taxes” from those who build on Ethereum and leverage the security and the tech platform.
Unique to Ethereum is the ability for investors to own a part of its value layer by investing into the Ethereum token (ETH), akin to owning shares in the foundational internet protocol TCP/IP.
Moreover, Ethereum investors can earn a yield like equity dividends by validating transactions – so-called “staking rewards”. In addition, the Ethereum protocol takes a certain amount of tokens out of circulation through its “burn” mechanism which is comparable to a stock buyback in equities.
It is no surprise that Ethereum (ETH) tends to be somewhat correlated with the performance of major equity indices such as the S&P 500 or the NASDAQ 100 but also offers diversification relative to pure equity allocations. For instance, the full sample correlation of Ethereum (ETH) to the S&P 500 is only around 0.31.
We therefore think that there is a strong case to be made for Ethereum as a substitute for a high-growth tech investment.
Read more in our special report on the investment case for Ethereum.
The numbers
The following chart and table present the performance of a plain-vanilla NASDAQ 100 (NDX) investment, an optimized portfolio consisting of NASDAQ 100 (NDX) and Ethereum (ETH) as well as a pure Ethereum (ETH) investment:
As one can see, an equity manager would have outperformed a pure NASDAQ 100 benchmark significantly by allocating approximately a quarter of this equity portfolio to Ethereum (ETH).
The outperformance vis-à-vis a NASDAQ 100 benchmark amounted to around 10%-points per year since 2021 without significantly compromising on overall volatility or max drawdown of the pure equity portfolio.
What is more is that Ethereum’s “Price-to-Earnings” ratio implied by staking rewards (“dividends”) and burn rate (“buybacks”) is comparatively attractive relative to the Magnificent 7 stocks, despite very high expected returns for Ethereum over the coming 10 years:
We don’t think that the market has yet fully discounted the performance potential of Ethereum (ETH) especially with regards to the potential price impact via the Ethereum ETF trading launch in the US as analysed here.
Bottom Line
• There is a strong case to be made for Ethereum as a substitute for a high-growth tech investment.
• The outperformance of an optimized equity portfolio that includes Ethereum vis-à-vis a NASDAQ 100 benchmark amounted to around 10%-points per year since 2021 without significantly compromising on overall volatility or max drawdown of the pure equity portfolio
• We think that the market has yet to fully discount the performance potential of Ethereum (ETH) especially with regards to the potential price impact via the Ethereum ETF trading launch in the US
To read more about suitable investment solutions with Ethereum, please click the button below:
This is not investment advice. Capital at risk. Read the full disclaimer
© ETC Group 2019-2024 | All rights reserved
Sedan augusti 2020 – när Strategy (MSTR) först köpte bitcoin – har aktien varit mer volatil än bitcoin själv.
Ändå har den under de senaste fem åren haft ett högre Sharpe-kvot– vilket betyder mer avkastning per volatilitetsenhet.
Tabellen visar hur 10 000 dollar i varje aktie presterade från augusti 2020 till augusti 2025.
Endast historiska data – inte en vägledning till framtida resultat.
IncomeShares MicroStrategy (MSTR) Options ETP använder en kontantsäkrad säljoptionsstrategi plus aktier på MSTR-aktier:
- Aktieexponering: ger ETPen viss uppåtpotential om aktiekursen stiger.
- Sälja säljoptioner: syftar till att generera månatlig inkomst, medan kontantstödet innebär att ETPen kan köpa fler aktier om priset faller under lösenpriset.
Följ IncomeShares EU för insikter.
HANetfs VD kommenterar Trump-Putin-toppmötet
AVWS ETF köper small cap value stocks
Mer volatil än bitcoin – men högre riskjusterad avkastning
QSPA ETF spårar de femhundra ledande amerikanska aktierna
Ny räntebärande ETF från SPDR på Xetra
Vilken ETF för Europas försvarsindustri är bäst?
8 nya IncomeShares ETPer kommer till Tyskland
De bästa ETFerna för att investera i artificiell intelligens (AI)
ETFer som ger exponering mot börsintroduktioner
De börshandlade fonderna som lockade mest i sommarvärmen
-
Nyheter3 veckor sedanVilken ETF för Europas försvarsindustri är bäst?
-
Nyheter4 veckor sedan8 nya IncomeShares ETPer kommer till Tyskland
-
Nyheter4 veckor sedanDe bästa ETFerna för att investera i artificiell intelligens (AI)
-
Nyheter2 veckor sedanETFer som ger exponering mot börsintroduktioner
-
Nyheter2 veckor sedanDe börshandlade fonderna som lockade mest i sommarvärmen
-
Nyheter3 veckor sedanFastställd utdelning i MONTDIV juli 2025
-
Nyheter2 veckor sedanMånadsutdelande ETFer uppdaterad med två börshandlade fonder från AXA
-
Nyheter4 veckor sedanAXA noterar två kortfristiga ränte-ETFer på Xetra
