A senior executive at Fidelity Digital Assets said some investors may be trying too hard to understand Bitcoin and missing out on investment opportunities in the process. Matt Horne, head of digital asset strategy for the firm’s institutional investor custody and trading unit, said investors and advisors are busy refining their cryptocurrency thesis, and regardless of their thesis, small portfolio allocations Probably suitable for them all. “You can have multiple investment theses on Bitcoin, and that’s okay,” Horn said Monday at the Vision 2024 conference, a cryptocurrency investment conference in Austin, Texas, hosted by the Council of Digital Asset Finance Professionals. “Most investors are saving money and investing with advisors to achieve some long-term goal (such as retirement),” Horn added. “Given a long-term horizon (and) position sizing appropriate to their risk, non-zero positions like Bitcoin may make sense for many clients.” The Bitcoin ETF hit the U.S. market about six months ago. Advisers who need regulated funds such as Bitcoin ETFs to guide wealthy clients to invest in Bitcoin represent a big case for these funds. Until now, however, many have avoided getting involved for a variety of reasons, from high volatility to distrust and lack of understanding of the asset class, to regulation and lack of track record. “We spend a lot of time arguing about disruptive technology (thesis) or venture capital or digital gold, and I think all of those are good,” he added. “The content of your thesis may determine position size, and where you source it in your portfolio.” BTC.CM= YTD Mountain Bitcoin (BTC) Year-to-date Investors and wealth managers willing to weigh in on Bitcoin generally recommend a 1% to a small allocation of between 5% to increase the risk of the portfolio without exposing it to too much of the volatility that cryptocurrencies are notorious for. “If (the worst-case scenario) does come to zero, the impact on the broader portfolio would be minimal due to the size of the conditions,” Horn said. “If it lives up to the expectations that many of us expect, there will be gains over time. , then you need to make sure your clients have some exposure there.” The Fidelity executive acknowledged that Bitcoin has a short lifespan — about 15 years old — and even then, it’s probably only worth tracking the years after 2015. – This makes it almost “impossible” to model. But that’s okay, he said. The key is for advisors and investors to seek education about this new area of investment. “It’s difficult because many professional investors are able to model all (other) asset classes given the amount of data we have now,” he said. “With digital assets, you don’t have the luxury… I Think that’s good,” he added. “That’s why you just have to understand why you might want to have it, understand the potential of the technology, and then position yourself accordingly.”
