[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"446b3d92-5288-404f-b97d-6eee40f4deaa","updated_at":"2024-06-05T03:54:06.268+00:00","account":{"firstName":"Mason","lastName":"Thompson"},"description":"The head of digital asset strategies at Fidelity Bank explained that most investors should have positions in Bitcoin regardless of their market thesis.","sapo":"Forget gold! Matt Horne, head of digital asset strategies at Fidelity Investments, is urging investors to add a slice of Bitcoin to their portfolios. This recommendation holds irrespective of their specific views or investment thesis on the decentralized cryptocurrency. ","title":"Should You Buy Bitcoin? Fidelity Exec Makes Surprising Recommendation","content":"

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On June 4th, Horne noted that many traditional investors and asset managers have been hesitant to invest in Bitcoin and the broader digital asset market due to the limited data and track record available for these new asset classes. However, Horne emphasized that it is crucial for investors to understand the rationale for potentially owning Bitcoin, as well as to comprehend the potential of blockchain technology, and then make an informed investment decision.

A Fidelity strategist suggests allocating a small portion, between 1% and 5%, of an investment portfolio to Bitcoin. This limited investment would minimize potential losses if Bitcoin's value plummets, while still allowing investors to benefit from potential growth and its potential to hedge against inflation.

Fidelity's remarks reflect growing institutional investor interest in cryptocurrencies. This asset class, initially ignored by many financial institutions, has gained significant traction following the launch of spot Bitcoin ETFs in the US this January, propelling Bitcoin's price above $70,000.

According to the most recent "Digital Asset Fund Flows" report, Bitcoin-focused funds saw $148 million in investment inflows during the final week of May. In fact, the total inflows for Bitcoin funds over the entire month of May amounted to nearly $2 billion.

weekly crypto asset flows

Source: CoinShares

Furthermore, since the start of 2024, Bitcoin funds and exchange-traded products have recorded over $14 billion in total inflows. Conversely, short Bitcoin funds witnessed capital outflows of $12.3 million in May, further suggesting a positive overall market sentiment among ETF and ETP investors towards Bitcoin.

The report also noted that Bitcoin investment funds now account for over $74 billion in assets under management globally. This figure underscores the significant inflows and growth in institutional investment into Bitcoin-focused funds and products.

May 2024 marked a watershed moment for crypto, with a staggering $2 billion surge into crypto funds. This massive inflow reflects the growing appeal of cryptocurrencies, not just Bitcoin and Ether, but the entire asset class. With such broad investor interest, the future of crypto seems bright.

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Should You Buy Bitcoin? Fidelity Exec Makes Surprising Recommendation

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