
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 bitcoinâÂÂs market cap has plenty of room to grow in a Tuesday report on the benchmark cryptocurrencyâÂÂs uncorrelated nature.
- Director of Research Ria Bhutoria wrote that the cryptoâÂÂs current market capitalization âÂÂis a drop in the bucket compared with markets bitcoin could disrupt.âÂÂ
- Bhutoria argued that while institutional inflows may damp bitcoinâÂÂs uncorrelated performance, the crypto is âÂÂfundamentally less exposedâ to the âÂÂeconomic headwindsâ that other assets will likely face.
- Bitcoin is therefore a âÂÂpotentially usefulâ asset for uncorrelated return-seeking investors.
- âÂÂIn a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher,â the report said.
Related Stories
- Grayscale Announces Best Ever Quarter With Over $1B Raised
- If This New Tech Works, You WonâÂÂt Need 32 Ether to Earn Staking Rewards
- WEF Releases Report Assessing Global Blockchain Standards
- Gate.io Unveils Hardware Crypto Wallet With Fingerprint Authorization
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.