Grayscale Research Head: JPMorgan Expects 10% Annualized Return on Bitcoin

on November 6, citing Bitcoin.com, that Zach Pandl, Head of Research at Grayscale, stated on November 4 that JPMorgan Asset Management has included Bitcoin in its 2027 long-term capital market assumptions, projecting a compound annual growth rate of 10%, higher than other asset classes.

Grayscale stated that Bitcoin's estimated correlation with U.S. large-cap stocks is 33%, one of the reasons it has garnered institutional attention. JPMorgan forecasts Bitcoin's annualized volatility at 55%, and due to its unstable correlation with other assets, has not included Bitcoin in its primary portfolio models, describing it as a speculative asset.

In the same long-term assumptions, returns for U.S. large-cap stocks are 7.5%, private equity is 9.8%, a 60/40 stock-bond portfolio is 7%, and gold is 5.5%. Grayscale noted that Bitcoin's role in a portfolio is linked to monetary easing, and that adoption levels, regulation, and liquidity all influence its economic characteristics.