Fidelity, a long-standing supporter of Bitcoin and cryptocurrencies, has recently released a report demonstrating how investors and portfolio managers could benefit greatly from having Bitcoin within their investment catalog. This particular report is titled “Bitcoin Investment Thesis.” It has also raised speculations that the elevated interest of institutions for the crypto may just propel it to a market capitalization by the hundreds of billions in the near future.
According to Fidelity, the research put within the report came from the countless of interviews it conducted. The firm notes that they talked to the most prominent experts and investors within the crypto scene to aggregate the data needed to release the particular report. Considering how the report turned out, it’s safe to say that the firm and the interviewees united to the conclusion that Bitcoin is indeed a viable, excellent alternative investment.
On top of all that, Fidelity’s report has also managed to estimate the latent reallocation of investments from fixed income and alternative investments to Bitcoin. Since the alternative investments market’s market value is currently 13.4 trillion, if Bitcoin were only to capture 5% of said market, the crypto’s market cap would skyrocket to $670 billion. Meanwhile, on the fixed income or bond market – which has a current market value of $50.3 trillion – even if Bitcoin just got 1%, it would still boost the crypto by over $500 billion.
Fidelity explicitly recommends that investors allot 5% of their current holdings on the dominant crypto to serve as their key for other possible investment opportunities. According to the firm, doing so would practically guarantee greater returns in the long run despite the market conditions.