Fidelity Digital Assets recommended in a Tuesday report that investors Ã¢ÂÂconsiderÃ¢ÂÂ diversifying 5% of their portfolios into bitcoin.
- A disciplined 5% would position investors to capitalize on bitcoinÃ¢ÂÂs potential growth while protecting against losses, the cryptocurrency unit of the mutual fund giant wrote in its latest report on bitcoinÃ¢ÂÂs investment thesis, spotted Tuesday by Decrypt.
- Director of Research Ria Bhutoria wrote that the cryptoÃ¢ÂÂs current market capitalization Ã¢ÂÂis a drop in the bucket compared with markets bitcoin could disrupt.Ã¢ÂÂ
- Bhutoria argued that while institutional inflows may damp bitcoinÃ¢ÂÂs uncorrelated performance, the crypto is Ã¢ÂÂfundamentally less exposedÃ¢ÂÂ to the Ã¢ÂÂeconomic headwindsÃ¢ÂÂ that other assets will likely face.
- Bitcoin is therefore a Ã¢ÂÂpotentially usefulÃ¢ÂÂ asset for uncorrelated return-seeking investors. Ã¢ÂÂConsider a portfolio with a target allocation of 5% bitcoin,Ã¢ÂÂ she wrote.ÃÂ
- Ã¢ÂÂIn a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher,Ã¢ÂÂ the report said.
UPDATE: 20:42 UTC: Adds details from the report.
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