Swiss digital wealth manager Descartes Finance is among the first providers in the country to incorporate Bitcoin into its strategic asset allocation. The goal is to optimize the risk-return profile of client portfolios. Depending on risk tolerance, Bitcoin can be weighted up to 5 percent.

A five-year portfolio simulation conducted by Descartes in collaboration with its service provider OLZ demonstrates, according to the company’s press release, that integrating Bitcoin more than triples the average return (from 2.22 to 7.05 percent) while increasing risk only moderately. This is also reflected in an improved Sharpe ratio, which measures the risk-return structure.

Five-year simulation by Descartes & OLZ with and without Bitcoin. (Image: Courtesy)

Bitcoin-Only Strategy

Speaking to finews.com, Adriano Lucatelli, founder and CEO of Descartes Finance, explains that the company deliberately focuses exclusively on Bitcoin. «In our view, it is the only cryptocurrency with sufficient liquidity and history to be analyzed within the framework of classical portfolio theory.»

The implementation is carried out through the 21Shares Core Bitcoin ETP, a financial product from Switzerland’s leading ETP provider. This enables a regulated and secure Bitcoin allocation without requiring investors to manage private keys.

Not Yet an Option for Retirement Savings

Currently, Descartes offers this option exclusively for its wealth management solutions and not for retirement savings.

Lucatelli told finews.com that Exchange Traded Products (ETPs) are not permitted in retirement savings by pension foundations. The company would have had to rely on Blackrock’s Bitcoin ETF in the U.S., «which would not have been a viable option in many respects.» Once a Bitcoin fund or ETF issued in Switzerland becomes available, this situation may change.