Fidelity Report Says Bitcoin’s Market Cap is ‘Drop in the Bucket’ of Potential
CORRECTION (Oct. 14, 2020, 04:25 UTC):ÃÂ This article originally said Fidelity recommended that portfolios consider a 5% allocation in bitcoin. The language used was a hypothetical. CoinDesk regrets the error.
Fidelity Digital Assets said bitcoinÃ¢ÂÂs market cap has plenty of room to grow in a Tuesday report on the benchmark cryptocurrencyÃ¢ÂÂs uncorrelated nature.
- 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¢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.
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