Crypto as an Asset Class

Crypto assets have rapidly evolved from a technological phenomenon into a recognized asset class with trillions of dollars in global market value. Blockchain technology forms the foundation for this growth, enabling secure ownership, transactions, and value transfers without the need for a central intermediary.


The development is driven by several structural and macroeconomic factors: inflation, growing government debt, rapid technological advancement, increased adoption, and the emergence of clear regulatory frameworks such as the EU’s MiCA regulation, which aims to increase transparency and strengthen investor protection.


At the same time, the market has gained further legitimacy as major established players such as BlackRock, Morgan Stanley, and several institutional managers integrate crypto assets into their offerings through regulated investment products. This marks a clear shift: crypto assets are now a relevant part of the discussion around modern asset management and have become an established part of the financial market.

What Gives Bitcoin Its Value?

Bitcoin represents a fundamental shift in how we think about money and value. As the first and most established crypto asset, Bitcoin has created a new paradigm for digital transactions and value preservation.


The growing interest from institutional investors has further solidified Bitcoin’s position as an established asset class. Today, several publicly traded companies, universities, governments, states, and leading asset managers have made significant investments in Bitcoin, while global financial institutions have launched their own products with exposure to Bitcoin and other crypto assets. As a broader segment of the financial market gains access to crypto assets, Bitcoin’s role as a potential tool for long-term value preservation is strengthened, particularly in times marked by inflation and geopolitical uncertainty.

The Largest Crypto Asset

Launched in 2009, Bitcoin is the first and most well-known crypto asset, now owned by hundreds of millions of people worldwide.

Decentralized

A decentralized monetary system—there is no central authority or intermediary that can control or manipulate the network. This ensures the network remains free from manipulation and vulnerabilities.

Limited Supply – Store of Value

There will never be more than 21 million Bitcoin. Like gold, Bitcoin is often seen as a store of value (“digital gold”) and a hedge against inflation.

Predetermined Supply Rate

Bitcoin follows predetermined rules for the rate at which new coins are created, including halving the creation rate approximately every four years.

Bitcoin in Portfolio Management

Historical comparisons show that portfolios with a certain share of Bitcoin—such as 5 percent—have generated higher returns than portfolios without crypto exposure. The outcome depends on factors such as market climate and asset allocation, but it illustrates how even a small share of Bitcoin—a decentralized, global, and digital asset with limited supply—can influence long-term portfolio performance.

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Bitcoin has historically contributed to improved returns. The graph shows cumulative returns for different portfolio allocations of Bitcoin between January 2021 and January 2025. Source: Virtune.

Nyckeltal0% BTC5% BTC10% BTC
Cumulative Return29.8941.0752.60
CAGR(%)6.538.4810.36
Sharpe Ratio0.670.830.91
Sortino Ratio1.111.351.46
Max Drawdown20.9523.3826.26
Calmar Ratio0.310.360.39

Bitcoin can contribute to better risk-adjusted returns. The table shows several key risk-adjusted performance metrics for the period January 2021 to January 2025. Source: Virtune.

Improved Risk-Return Balance

Portfolios with a certain share of Bitcoin have in some cases demonstrated improved risk-adjusted returns compared to portfolios without exposure. The combination of high average annual returns and low correlation with traditional assets has historically contributed to better risk-adjusted performance.

Low Correlation Creates Diversification Opportunities

Bitcoin has shown characteristics distinct from traditional asset classes, especially in terms of movement patterns. One of the most notable features is its low correlation with assets such as stocks and bonds. During periods of market turbulence, Bitcoin has in several cases moved independently from other markets, creating opportunities for diversification within a broader portfolio.

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The matrix shows the correlation between Bitcoin and other assets from January 1, 2024, to January 1, 2025. Source: Virtune.

Liquidity in an ETP

ETPs are traded on exchanges similarly to stocks, but their liquidity functions differently. The number of outstanding ETP units is continuously adjusted as new units are created or redeemed based on demand. This means that liquidity primarily depends on the liquidity of the underlying asset, not the trading volume of the ETP itself. For investors, this means that large trades can often be executed without issue, as long as the underlying asset is sufficiently liquid.

Why choose ETPs over direct crypto investments?

Virtune’s Exchange Traded Products (ETPs) offer a secure and regulated way to gain 1:1 exposure to crypto assets like Bitcoin, without the complexities of direct ownership. With simplified tax reporting, institutional-grade custody, and access through your local brokers and banks, ETPs are an attractive option for investors seeking an easy and secure way to invest in crypto assets.

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The Easiest way

Virtune's ETPs are traded directly on regulated exchanges as straightforwardly as trading a stock through your online broker or bank, without the need of wallets, private keys, or crypto exchanges.

Tax benefits

Crypto ETPs can be stored in your ISK or capital insurance which means that you pay a flat annual tax instead of 30% capital gains tax.

All your investments in one place

Seamlessly integrate your crypto investments into your traditional portfolio. This simplifies tracking, diversification, and overall investment management, giving you more control and clarity over your financial growth.

Institutional grade security

Our ETPs are 100% physically backed. As a regulated crypto asset manager, we offer a higher level of security and protection compared to holding crypto directly in personal wallets.

Additional investor protection

Virtune employs a Collateral Agent whose purpose is to protect and represent the investors in our products. The crypto assets are stored separately in cold storage (offline) at our custodian institution, Coinbase.

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Virtune Bitcoin Prime ETP

Listed on Nasdaq Stockholm

Virtune Bitcoin Prime ETP is a physically-backed exchange-traded product (ETP) offering efficient and low-cost exposure to Bitcoin (BTC). Designed with institutional investors in mind, this ETP combines a highly competitive 0.25% management fee with institutional-grade security and full transparency.

Get in touch!

If you are interested in learning more about Virtune, our products and how crypto assets can be a great addition to your portfolio diversification strategy, please feel free to contact us by sending an email to hello@virtune.com or by filling out the form below with your contact details. We will get back to you as soon as possible.

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