Fidelity Executive Recommends Incorporating Bitcoin into Most Investors’ Portfolios
Fidelity Investments’ Head of Digital Asset Strategies, Matt Horne, asserts that incorporating Bitcoin (BTC) into investment portfolios is prudent, irrespective of one’s stance on the decentralized currency.
In a CNBC report dated June 4, Horne highlights the tendency among traditional investors and asset managers to overanalyze when considering Bitcoin and the digital asset market. He remarks, “It’s tough because a lot of professional investors are able to model out every asset class given the amount of data that’s at our fingertips now. With digital assets, you don’t have the luxury… and I think that’s fine.”
Horne emphasizes the importance of grasping the underlying reasons for owning Bitcoin and its technological potential, suggesting that investors allocate a modest portion of their portfolio, typically between 1-5%. This allocation, he explains, strikes a balance, minimizing risk in the event of Bitcoin becoming worthless while allowing for potential gains and serving as a hedge against inflation.
His perspective mirrors the growing interest from institutional investors and fund managers in Bitcoin and cryptocurrencies, a trend that gained momentum following the introduction of spot Bitcoin exchange-traded funds in the United States in January 2024, driving Bitcoin’s price to surpass $70,000 per coin.
According to the recent Coinshares “Digital Asset Fund Flows” report, Bitcoin funds saw $148 million in inflows during the last week of May, with total monthly inflows nearing $2 billion. Since the beginning of 2024, Bitcoin funds and exchange-traded products have attracted over $14 billion in inflows, indicating sustained positive sentiment among ETF and ETP investors.
Additionally, the report highlights that Bitcoin investment funds now manage over $74 billion in assets globally, underlining the increasing institutional adoption of the leading cryptocurrency.
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