Does crypto belong in a Canadian wealth portfolio?

Crypto’s appeal lies in its growth potential and its ability to diversify a portfolio, but it comes with sharp price swings and uncertain long-term outcomes. The key question isn’t just whether it might boost returns, but whether it fits your risk tolerance and overall strategy.

For investors looking to explore the space, platforms like Coinbase have helped make buying, selling, and holding crypto more accessible in Canada.

BTC outperformed the stock market in 7 of the past 10 years

As the table below shows, since 2016 BTC has outperformed the S&P 500 (U.S. stock market index), S&P/TSX Composite (Canadian stock market index), and gold in seven of the past 10 calendar years. The margin of outperformance is not narrow either. In 2024—the most recent year of BTC outperformance—BTC outperformed the S&P 500 by 97.74 percentage points.

To be sure, BTC’s moves are exaggerated both ways; when it underperforms, it does so pretty dramatically. For example, in 2022 BTC was down 44.83 percentage points more than the S&P 500.

YearBTC % changeS&P 500 % changeS&P/TSX Composite % changeGold % changeTop performer2025(6.34)16.3928.9364.69Gold2024 121.0523.3117.9827.23BTC2023155.4224.238.1213.08BTC2022(64.27)(19.44)(8.66)(0.23)Gold202159.6726.8921.74(3.51)BTC2020303.1616.262.1724.43BTC201992.228.8819.1318.83BTC2018(73.56)(6.24)(11.64)(1.15)Gold20171368.9019.426.0312.57BTC2016123.839.5417.518.63BTC

Source: BTC data taken from slickcharts on Apr. 16, 2026; S&P 500 data taken from Macrotrends on Apr. 16, 2026; S&P/TSX Composite data taken from Wikipedia and Yahoo finance ; Gold data taken from Macrotrends on Apr. 16, 2026.

Portfolio performance by calendar year

With BTC’s outperformance in mind, below is a comparison of the approximate calendar year returns of two hypothetical multi-asset portfolios—we’ll call them A and B. Portfolio A contained a 5% allocation to BTC and B contained no BTC. Here’s the composition of each one:

Portfolio A: 40% S&P/TSX Composite, 40% S&P 500, 15% gold, 5% BTC

Portfolio B: 40% S&P/TSX Composite, 40% S&P 500, 20% gold, 0% BTC

Below is a table (and chart) comparing the performance of these portfolios in each of the past 10 calendar years:

Calendar yearPortfolio A(Percentage return with 5% BTC)Portfolio B(Percentage return without BTC)202527.5131.07202426.6521.96202322.6715.572022(14.49)(11.29)202121.9118.75202026.1912.26201926.6422.972018(11.00)(7.38)201780.5112.69201618.3112.55

As the table and chart above show, a portfolio with a 5% allocation to BTC would have outperformed one with no crypto exposure in seven of the past 10 years. This helps explain why some investors are considering a small allocation.

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But past performance doesn’t tell the whole story. Bitcoin is a highly volatile asset, with prices that can swing sharply over short periods. Any potential upside needs to be weighed against the risk of significant drawdowns, and whether that level of uncertainty fits your overall investment plan.

BTC is a mature asset, not a gambling chip

As the crypto market matures and attracts an increasing number of institutional investors, the market is beginning to show signs of increasing stability, one of which is a decline in volatility.

As the chart below shows, BTC’s annualized 30-day volatility has dropped from a high of about 158% in 2018 to its current value of just over 40% on April 20, 2026.

Source: Theblock.co on April 20, 2026

For another perspective, the chart below shows Bitcoin’s volatility relative to its market capitalization over time. While the chart reflects data through 2024, more recent market activity continues to support the same trajectory: as Bitcoin’s market cap has grown, its volatility has generally declined. This pattern helps explain why BTC has drawn increasing interest from some Canadian investors.

It’s important to remember, though, that BTC remains a highly volatile asset and sharp price swings are common.

Source: Fidelitydigitalassets.com on April 20, 2026

Crypto beyond BTC

In the sections above, I’ve made the case for allocating a small amount of your portfolio to the largest cryptocurrency by far, BTC. But what about the other cryptocurrencies, such as ethereum (ETH), solana (SOL), or XRP, all of which are available to buy and sell through platforms such as Coinbase, which offer access to a range of digital assets.

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