ORIGINAL RESEARCH article
Front. Blockchain
Sec. Blockchain Economics
This article is part of the Research TopicBlockchain and Tokenomics for Sustainable Development, Volume IIView all articles
Unlocking Blockchain-Driven Financial Opportunities: Optimizing Portfolios with Cryptocurrencies and European Stock Markets
Provisionally accepted
- 1Hungarian University of Agriculture and Life Sciences; Institute of Rural Development and Sustainable Economy , Godollo , Hungary, Godollo, Hungary
- 2Hungarian University of Agriculture and Life Sciences; Institute of Rural Development and Sustainable Economy, Godollo, Hungary
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This study explores how blockchain financial instruments may broaden investment opportunities, notably cryptocurrencies like Bitcoin and Ethereum, when joined with typical European stock indices (BUX, DAX, FTSE) during portfolio optimization. The analysis uses data spanning from January 2019 to December 2023 as it examines correlations as well as covariances between these assets plus it highlights how the decentralized and innovation-driven nature of blockchain technologies introduces new avenues with respect to return generation, albeit considering heightened volatility. Cryptocurrencies open access into a blockchain-shaped, rapidly growing financial ecosystem though their extreme price fluctuations increase overall portfolio risk. European stock indices offer some relative stability and correlate little in degree to cryptocurrencies. Thus these indices balance out portfolios while improving resilience also reducing volatility. Blockchain asset integration with customary markets implies active growth for financial opportunities through technology changes and greater diversity. This interplay supports more dynamic portfolio strategies in its ultimate form, leading to a future-oriented long-term vision.
Keywords: Bitcoin price, Ethereum price, European stock indices, Sharpe ratio, Diversification
Received: 14 Jul 2025; Accepted: 28 Oct 2025.
Copyright: © 2025 Gulyás, Sipiczki and Gál. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Zoltan Sipiczki, sipiczki.zoltan@uni-mate.hu
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