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New research from Grayscale suggests that crypto assets are becoming less correlated with Bitcoin. In a report released November 12, 2026, the firm said Bitcoin now accounts for only about half of the variation in returns across crypto sectors.
What Grayscale found
The report is part of Grayscale’s research series called “The Stack.” It was written by Zach Pandl, Grayscale’s Head of Research, and Charlie Perkins, CFA, a Research Associate at the firm.
The central finding is about how much Bitcoin drives everything else. According to the authors, Bitcoin explains roughly 50% of the return variation across crypto sectors. The report also says pairwise correlations between sectors have decreased.
The research breaks down annualized volatility by sector. Grayscale estimated how much of each sector’s swings can be attributed to Bitcoin-related factors:
Currencies: 49% annualized volatility, with 43% attributed to Bitcoin-related influences.
Smart Contract Platforms: 58% annualized volatility, with 38% tied to Bitcoin.
Financials: 59% annualized volatility, with 30% tied to Bitcoin.
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Utilities & Services: 67% annualized volatility, with 30% tied to Bitcoin.
Consumer & Culture: 76% annualized volatility, with 46% tied to Bitcoin.
Artificial Intelligence: 85% annualized volatility, with 35% tied to Bitcoin.
The Currencies sector is the calmest of the group at 49%. Financials and Utilities & Services show the smallest Bitcoin-attributed shares in the table, at 30% each. The Artificial Intelligence sector carries 85% annualized volatility, with only 35% attributed to Bitcoin.
The context: Bitcoin’s own volatility
According to the research, Bitcoin’s one-year realized volatility recently reached approximately 43%. Every sector Grayscale tracked runs hotter than Bitcoin on an annualized basis.
What this means for investors
If Bitcoin explains only about half of sector returns, then the other half is up for grabs. The Bitcoin-attributed share of volatility varies meaningfully by sector, from 30% for Financials and Utilities & Services to 46% for Consumer & Culture. That spread gives allocators a rough map of which sectors add genuine diversification and which mostly add amplified Bitcoin exposure.
Lower correlation is not the same thing as lower risk. Each sector Grayscale examined carries volatility above Bitcoin’s roughly 43%.
