Invest 1% to 5% of Portfolio in Bitcoin, Regardless of View, Says Fidelity Executive
CryptoNewsTerminal Staff04 Jun, 2024
Invest 1% to 5% of Portfolio in Bitcoin, Regardless of View, Says Fidelity Executive
Matt Horne, global head of digital asset strategy at Fidelity, a large global asset manager and issuer of a bitcoin spot ETF, said at the 2024 Visionaries Conference in Austin, Texas, recently that "You can have a view on bitcoin, but it makes sense to have a small allocation in your portfolio. ... It is probably reasonable for most clients to have some exposure to things like bitcoin over the long term, with a thoughtful risk-management approach." In this regard, he emphasized, "Investors save for long-term goals like retirement and invest with advisers. We often get caught up in the debate about disruptive technology, venture capital or digital gold versus bitcoin. But I personally think it's OK to have a view either way. So allocate 1% to 5% of your portfolio to bitcoin where, if it goes to zero, you won't be devastated." At the same time, he acknowledged that "bitcoin is an emerging asset, only 15 years old, and its price action has only really been trackable since 2015. So it's really hard to 'model' it." Still, it is worth investing in, and the most important thing is for investors and advisers to educate themselves about the new asset class of crypto, he added.
