Diversify with Bitcoin

Founder and CEO of Lake Avenue Financial, a California-based wealth management firm, Alex Chalekian has forged his path, deeply motivated by his family’s struggles with money management. Having experienced the challenges of pursuing the American Dream, he developed a strong desire to educate others on how to build better money habits. In partnership with CoinShares, he explains how Bitcoin can offer diversification in a portfolio.

Bitcoin offers distinct characteristics that set it apart from traditional assets like equities and fixed income. Its historical low correlation with stocks and bonds means it can help reduce overall portfolio risk, as it tends not to move in lockstep with other investments. Many also see Bitcoin as a long-term hedge against inflation and a store of value, often likened to digital gold due to its capped supply of 21 million coins.

Institutional adoption has reinforced this perception, with growing inflows from larger investors. Beyond acting as a diversifier, Bitcoin has delivered exceptional returns in certain periods, outperforming the S&P 500 and becoming the best performing asset in most of the past 15 years¹. However, while these features make it an attractive addition to a diversified portfolio, they must be balanced against its volatility and evolving regulatory landscape.

Alex Chalekian emphasizes that Bitcoin, as an asset class, can offer significant diversification benefits due to its low correlation with traditional markets

¹Source: Bloomberg, CoinShares, data available as of close 21 February 2025. Past performance is not indicative of future performance.