Grayscale Head of Research: JPMorgan Expects 10% Annualized Return for Bitcoin

TechFlow reported on November 6 that, according to Bitcoin.com, Grayscale Head of Research Zach Pandl said on November 4 that JPMorgan Asset Management has included Bitcoin in its 2027 Long-Term Capital Market Assumptions, estimating a 10% compound annualized return for Bitcoin, higher than other asset classes.

Grayscale said Bitcoin's estimated correlation with U.S. large-cap equities is 33%, one reason for institutional interest in it. JPMorgan expects Bitcoin's annualized volatility at 55% and, because its correlation with other assets is unstable, has not included Bitcoin in its main portfolio models, describing it as a speculative asset.

In the same long-term assumptions, U.S. large-cap equities return 7.5%, private equity 9.8%, a 60/40 equity-bond portfolio 7%, and gold 5.5%. Grayscale said Bitcoin's role in portfolios is linked to monetary easing, while adoption levels, regulation, and liquidity all affect its economic characteristics.

Source: TechFlow