Matt Horn, head of digital asset strategies at Fidelity Investments, says investors should allocate at least a small portion of their portfolios to Bitcoin (BTC), regardless of their investment thesis on the decentralized currency.
In a June 4 CNBC report, Horn alluded to the problem of analysis paralysis that many traditional investors and asset managers suffer from when it comes to investing in Bitcoin and the digital asset market:
“It’s difficult because many professional investors are able to model each asset class given the amount of data we currently have. With digital assets, you don’t have that luxury…and I think that’s good.
“That’s why you just need to understand why you want to have this, understand the potential of this technology, and then position yourself accordingly,” he added.
The Fidelity strategist explained that a small allocation, typically between 1 and 5 percent, would be small enough to reduce risk if Bitcoin fell to zero, but large enough to take advantage of any cryptocurrency rebound and hedge inflation .
Horn’s comments reflect growing interest among institutional investors and money managers in Bitcoin and cryptocurrencies – technologies that were initially rejected or written off by many large financial institutions until fairly recently.
about: Warren Buffett’s Berkshire Hathaway has collapsed 99%… against Bitcoin since 2015.
Institutional interest in Bitcoin and other digital assets increased after the introduction of Bitcoin spot exchange-traded funds in the United States in January 2024, pushing the asset to over $70,000 per coin.
According to the latest cryptocurrency report “Digital Asset Fund Inflows,” Bitcoin funds saw inflows of $148 million in the last week of May, with monthly Bitcoin fund inflows totaling nearly $2 billion. dollars in May alone.
Since the start of 2024, Bitcoin funds and exchange-traded products have seen over $14 billion in inflows, while short Bitcoin funds have seen $12.3 million in outflows for the month of May, indicating that market sentiment among ETF investors continues to improve. positive for Bitcoin.
The Coinshares report also noted that Bitcoin investment funds represent more than $74 billion in assets under management worldwide.
review: Recursive models: the “supercomputer” of Bitcoin and BTC DeFi coming soon.
