Fidelity Report Says Bitcoin's Market Cap Is 'Drop in the Bucket' of Potential
CORRECTION (Oct. 14, 2020, 04:25 UTC): 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 bitcoin's market cap has plenty of room to grow in a Tuesday report on the benchmark cryptocurrency's uncorrelated nature.
- Director of Research Ria Bhutoria wrote that the crypto’s current market capitalization “is a drop in the bucket compared with markets bitcoin could disrupt.”
- Bhutoria argued that while institutional inflows may damp bitcoin’s uncorrelated performance, the crypto is “fundamentally less exposed” to the “economic headwinds” that other assets will likely face.
- Bitcoin is therefore a “potentially useful” asset for uncorrelated return-seeking investors.
- “In a world where benchmark interest rates globally are near, at, or below zero, the opportunity cost of not allocating to bitcoin is higher," the report said.
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