The role of cryptocurrencies in the investment found NextGen ETF: innovation and diversification in portfolio management

Abstract

The integration of cryptocurrencies into traditional investment portfolios represents a significant evolution in modern financial management. This study analyzes the NextGen ETF proposal, an exchange-traded fund that incorporates 20% digital assets (Bitcoin and Ethereum) combined with US stocks. Based on a quantitative and projective methodology, five capital allocation strategies were designed, highlighting the Maximum Sharpe with Diversification strategy as the most efficient, achieving an estimated annual return of 29.69% and a Sharpe ratio of 2.20. The simulations, based on Markowitz's Modern Portfolio Theory, demonstrated that structured diversification with uncorrelated assets allows for the optimization of risk-adjusted returns, even in highly volatile scenarios. The study also considered regulatory and tax aspects of the Mexican market, confirming the fund's operational viability in the International Quotation System. The conclusion is that the NextGen ETF not only improves financial performance but also anticipates emerging trends in technology investing, offering a robust solution for investors with moderate to aggressive profiles seeking to combine innovation with quantitative efficiency.