March 16, 2026
Strategic Portfolio Allocation to Gold and Bitcoin: Why Investors May Need Both
"I don't care if the cat is black or white, as long as it catches mice." — Deng Xiaoping
Do Gold and Bitcoin Serve the Same Role in a Portfolio?
Bitcoin and gold are often treated as rivals. We aren't here to settle that debate. What we want to highlight is that combining gold and bitcoin creates valuable synergies for portfolio construction.
This analysis reflects the multi-asset research perspective developed across CI Global Asset Management (GAM).
Gold: The Wise Elder
Gold has served as a store of value for thousands of years. Like a wise elder, it neutralizes chaos with tranquility. In fact, gold is "long chaos"; it thrives on disorder. When the USD gets weaponized, Federal independence is threatened, or systemic fear emerges, gold tends to rally, acting as a geopolitical hedge. This stabilizing role is often expressed through an ETF with gold exposure.
2025 was a year that brought chaos: 16+ key tariff, fiscal, geopolitical, and Fed independence shocks occurred. Here’s how gold responded to each:
Gold since 2025
Responding to Chaos
Source: Python Code, Yahoo Finance, CI GAM Research, Morningstar Direct. As at: February 14, 2026. Data used is LBMA Gold Price Index in CAD
Bitcoin: The Explosive Teenager
Bloomberg's Eric Balchunas dubbed bitcoin "teenager gold," and the description fits its behavior. Bitcoin has the raw energy to outpace everything when conditions align. But like some teenagers, it goes through episodes of existential crises; it’s in one right now (Exhibit 1). The drive, however, is undeniable: when bitcoin moves, it moves decisively, acting as a high-volatility growth diversifier. This is often delivered through an ETF with bitcoin exposure, where digital assets are integrated alongside traditional holdings within a regulated structure.
After every past existential crisis, bitcoin has rebounded with triple-digit recoveries within one year alone (Exhibit 2).
Exhibit 1:
Bitcoin: The Teenager Gold
"Existential Crisis" Drawdowns are Usual for Bitcoin
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Source: Python Code, Yahoo Finance, Morningstar Direct. Chart takes log returns of Bitcoin and uses Bloomberg Galaxy Bitcoin Price Return Index in CAD. As at: February 14, 2026
Exhibit 2:
Bitcoin: The Upside of Drawdowns
Explosive Upside After Every Drawdown
Source: Morningstar Direct. As at: February 14, 2026.
Investors may access bitcoin exposure through vehicles such as CI Galaxy Bitcoin ETF (BTCX), designed for integration within diversified portfolios.
What Happens When Gold and Bitcoin are Combined in a Portfolio?
As the familiar disclaimer goes: past performance doesn't indicate future returns. But examining the reasons behind past performance and mapping them onto the regime ahead remains a worthwhile exercise. Drawing on portfolio design methods used by CI GAM funds, we created two hypothetical all-equity portfolios, each with broad global equity exposure. To the first, we added a 4% strategic allocation to bitcoin. To the second, we added 4% bitcoin and 4% gold. We then compared both against a 100% Global equity portfolio, proxied by Morningstar's Global Equity Peer Group Average.
At first glance, the performance trajectories for both hypothetical portfolios look similar:
Performance Trajectories: Nearly Identical Growth
Growth of $1 Million
Underlying holdings are 4% Bloomberg Galaxy Bitcoin PR Index, 4% LBMA Gold Price Index, 23% MSCI EAFE NR Index, 8% MSCI EM NR Index, 28% Russell 1000 TR Index, and 33% S&P/TSX Composite index for model portfolio 1.
Model portfolio 2 has 4% allocation to Bitcoin but no allocation to Gold. Both have a fee of 0.25% applied, and are rebalance quarterly. Common Inception date is November 6th, 2020 for Bloomberg Galaxy Bitcoin PR index.
The most interesting results appear below the surface. The Gold + Bitcoin Model portfolio outperforms on all risk and risk-adjusted measures, demonstrating the synergy effect:
| Metric | Gold + Bitcoin | Bitcoin Only | Difference | Advantage |
|---|---|---|---|---|
| Annualized Return | 16.29% | 15.84% | +0.45% | better |
| Volatility (Standard Deviation) | 11.15% | 11.51% | −0.36% | lower |
| Sharpe Ratio | 1.18 | 1.11 | +6.30% | higher |
| Sortino Ratio | 2.13 | 1.97 | +8.10% | higher |
| Max Drawdown | −17.19% | −17.89% | +0.70% | better |
| Final Portfolio Value | $2,291,048 | $2,257,566 | $33,482 | higher |
Source: CI Global Asset Management. Morningstar Direct. As at: February 14, 2026.
When the elder and teenager worked together, we got optimal results. If we map the optimal allocation for the regime ahead, a strategic allocation to gold and bitcoin together remains superior to bitcoin alone. This approach is sometimes described as an equity and gold ETF or equity and bitcoin ETF framework.
Advisory teams affiliated with Assante Wealth Management and on digital platforms such as WealthBar are increasingly discussing these strategies within discretionary portfolio frameworks using a diversified ETF structure.
CI Financial Launches CI Asset Allocation+ ETFs:
Passive, low-cost All-in-One ETFs with strategic allocation to Gold & Bitcoin are now a reality. At CI GAM, we've pioneered the CI Asset Allocation+ Suite, available in balanced and all-equity profiles, with an additional allocation to gold and bitcoin.
Asset Mix | ~57% Equity/38% Fixed Income |
Plus Allocation | 5% (2.5% gold / 2.5% bitcoin) |
Management Fee | 0%* |
Asset Mix | ~92% Equity |
Plus Allocation | 8% (4% gold / 4% bitcoin) |
Management Fee | 0%* |
Source: CI Global Asset Management. The pie charts show neutral asset mix, which represent approximate allocation of the fund. Actual weights may differ.
*Management fee is being waived until June 30, 2026. After this promotional period ends, standard Management fee of 0.25% will apply.
For Illustrative purposes only.
Resources:
Glossary of Terms
Drawdown: Measures the peak-to-trough decline of an investment or, in other words, the difference between the highest and lowest price over a given timeframe.
Return (absolute): The measure of what an investment returned over a given time period. An investment that rose from $1,000 to $1,100 would have an absolute return of 10%.
Sharpe Ratio: A risk-adjusted return measure calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the portfolio's historical risk-adjusted performance.
Sortino ratio: An evolution of the Sharpe ratio. Ignores “good volatility” (upward price movement) and focused solely on returns per unit of “bad volatility” (downward price movement), which is more indicative of the risk of loss.
Standard Deviation: A measure of risk in terms of the volatility of returns. It represents the historical level of volatility in returns over set periods. A lower standard deviation means the returns have historically been less volatile and vice-versa. Historical volatility may not be indicative of future volatility.
Volatility: Measures how much the price of a security, derivative, or index fluctuates. The most commonly used measure of volatility when it comes to investment funds is standard deviation.
About the Author
Adam Bahram is Director, Investment Strategist at CI Global Asset Management, where he oversees the firm’s asset allocation strategies. In this role, Adam is responsible for providing portfolio insights to institutional and advisor audiences while supporting the positioning and growth of CI GAM’s investment solutions.
Adam brings extensive experience in buy-side research analysis, asset allocation, and portfolio management. Prior to joining CI GAM, he served as an Associate Client Portfolio Manager on the Asset Allocation team at TD Asset Management, where he developed expertise in constructing and managing investment strategies. He has also served on the investment committee of a wealth management firm.
Adam holds a Master of Finance from the Sobey School of Business at Saint Mary’s University and is a CFA charter holder.
IMPORTANT DISCLAIMERS
CI Galaxy Bitcoin ETF (the “ETF”) is an exchange-traded mutual fund that invests in the digital currency bitcoin. Given the speculative nature of bitcoin and the volatility of the bitcoin markets, there is no assurance that the ETF will be able to meet its investment objective. An investment in the ETF is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. An investment in the ETF is considered high risk. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in mutual funds and exchange-traded funds (ETFs). Please read the prospectus before investing. Important information about mutual funds and ETFs is contained in their respective prospectus. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. This document is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Market conditions may change which may impact the information contained in this document. All charts and illustrations in this document are for illustrative purposes only. They are not intended to predict or project investment results. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. Certain statements in this document are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. 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