39 Bitcoin's Correlation To Traditional Assets Is Low Historically, bitcoin’s price movements have not correlated highly to those of other asset classes. During the past five years, the correlation of bitcoin’s returns relative to traditional asset classes has averaged only 0.27. 1,2 Asset Class Correlation Matrix (12-Month As Of December 2023) High correlation: coefficient value lies between ± 0.66 and ±1 Moderate correlation: coefficient value lies between ± 0..4 and ± 0.66 Low correlation: coefficient value lies below ± 0.4 ON I T Bitcoin Gold Commodities Real Estate Bonds Equities Emerging Markets A OC Bitcoin 0.2 0.1 0.4 0.26 0.41 0.23 L L A Gold 0.2 -0.03 0.28 0.46 0.26 0.34 N OI C Commodities 0.1 -0.03 0.42 -0.12 0.43 0.5 T BI Real Estate 0.4 0.28 0.42 0.57 0.86 0.68 Bonds 0.26 0.46 -0.12 0.57 0.48 0.46 Equities 0.41 0.26 0.43 0.86 0.48 0.73 Emerging Markets 0.23 0.34 0.5 0.68 0.46 0.73 AVERAGE 0.27 0.25 0.21 0.53 0.35 0.53 0.49 [1] A correlation of 1 connotes that assets perfectly move in tandem; 0 means their movement is completely independent from each other; -1 suggests that they move in perfectly opposite directions. [2] Asset classes are represented by the following instruments: SPDR S&P 500 ETF Trust (SPY, equities), Vanguard Total Bond Market Index Fund Investor Shares (VBMFX, bonds), Vanguard Real Estate Market Index Fund Investor Shares (VGSIX, real estate), SPDR Gold Trust (GLD, gold), iShares S&P GSCI Commodity-Indexed Trust ETF (GSG, commodities), and Vanguard Emerging Markets Stock Index Fund Investor Shares (VEIEX, emerging markets). The performance used to represent each asset class reflects the net asset value (NAV) performance of each ETF/fund for the time periods shown. Sources: ARK Investment Management LLC, 2024, based on data and calculation from PortfolioVisualizer.com, with bitcoin price data from Glassnode, as of December 31, 2023. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security or cryptocurrency. Past performance is not indicative of future results.