Goldman Sachs unveils its top asset ranking and you’ll be surprised at the number one

Goldman Sachs has ranked bitcoin as the best performing asset so far this year. The crypto-currency also topped the global investment bank’s list of assets with the best risk-adjusted returns, ahead of gold, real estate, the S&P 500 and the Nasdaq 100.

Bitcoin beats other investments on Goldman chart

Global investment bank Goldman Sachs has reportedly ranked bitcoin as the best performing asset year-to-date (YTD). The Twitter account Documenting Bitcoin tweeted earlier this week:

Bitcoin is the world’s best performing asset this year, according to the latest data from Goldman Sachs.

The tweet includes a market performance chart by Goldman Sachs showing the total returns of the top 25 markets as well as their risk-adjusted returns year-to-date.

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Bitcoin tops the list of total returns with 27%, followed by the MSCI Emerging Markets Index with 8%. Bitcoin also tops the Goldman Sachs risk-adjusted returns list, with a Sharpe ratio of 3.1. The price of bitcoin has risen since the firm released its chart. At the time of this writing, BTC is trading at $23,130, up more than 39% year-to-date.

Goldman Sachs ranks bitcoin as the best performing asset year-to-date.
Goldman Sachs’ year-to-date performance chart, with bitcoin in the lead. Source: Documenting Bitcoin on Twitter

Gold, to which many people have compared bitcoin as a store of value and a hedge against inflation, has ranked several places below it. Bitcoin is on both the total return and risk-adjusted return lists. B’OR has a year-to-date total return of 6% and a Sharpe ratio of 2, according to Goldman’s chart. A higher Sharpe ratio indicates that the investment has produced higher returns for a given level of risk.

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However, Goldman Sachs said in December of last year that gold was a better “portfolio diversifier” than gold because it is likely to be less influenced by tightening financial conditions. In addition, the bank’s analysts believe that gold has developed non-speculative use cases while bitcoin is still looking for one.

Goldman Sachs has been in the crypto space for several years. The company officially established a crypto-currency trading desk in May 2021. In January of last year, the investment bank predicted that Bitcoin could reach $100,000 as the crypto continues to take market share from gold. Last year, Goldman Sachs executed its first over-the-counter crypto trade, offered its first bitcoin-backed loan and launched a data service to help investors analyze crypto markets.

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