Mike McGlone, a senior analyst at Bloomberg, pointed out that "virtual assets have shown poor performance over the past decade in terms of risk-adjusted returns compared to the Nasdaq index," adding that they are "failed assets from a portfolio and risk management perspective." According to a Bloomberg report, the MarketVector Digital Assets 100 Index (MVDA) has recorded approximately three times higher volatility than the Nasdaq-100 Index (NDX) since 2017, yet has failed to escape a flatline trend in terms of relative returns. Generally, high volatility can be offset by portfolio diversification effects through a negative (-) correlation with stocks, but virtual assets have maintained a positive (+) correlation with the stock market, failing to provide practical benefits in terms of risk management. The MVDA index, which has a Bitcoin weighting of approximately 67%, has failed to surpass Nasdaq's performance since virtual assets entered the institutional sphere with the launch of CBOE and CME Bitcoin futures in 2017. He further anticipates that it will be difficult for virtual assets to generate unique excess returns compared to traditional assets in the future, as major positive catalysts such as the approval of a Bitcoin spot ETF and the Donald Trump administration's pro-virtual asset policy stance have already largely been reflected in the market.
