Fidelity Digital Assets spoke with stakeholders who are working proactively on their investing thesis, pursuing confirmation, or have yet to embark on the process in their respective digital asset journeys.
As such, Fidelity compiled a range of reports which discuss today’s interest in Bitcoin, investment, and future developments of the network.
Bitcoin as 5% of All Portfolios
This will allow people to build a thesis and understanding based on the facts, particularly as Bitcoin is progressively incorporated with conventional markets and portfolios.
Bitcoin can mean a variety of things for many people. Whether they continue to hold Bitcoin depends on the present and future outlook of Bitcoin.
According to Fidelity, these conversations have focused around whether Bitcoin, the native currency, a store of cash, a means of trading, is a financial asset, or something else entirely.
Moreover, it is unclear whether Bitcoin is best used to facilitate bulk clearance and time stamping of data
The irony is that as the environment matures, Bitcoin will fulfill a number of roles concurrently – either inherently or in increments. One of the uniqueness of Bitcoin is that it does not have a particular function to fulfill.
Fidelity states that Bitcoin’s role depends on who is using it and what for.
In addition, Fidelity’s report indicates that investors maintain 5% of their alternative investments in Bitcoin. This is a further indication that, amid external conditions, organizations warm up to digital gold and remember its potential to produce uncorrelated returns.
Bitcoin as an Alternative Investment
Anything that is not a conventional investment is the broadest classification of alternative investment.
Traditional investing is a long-standing public equity position, fixed income of investment-grade (corporate and government public debt), or specific assets. Anything outside of these areas are considered alternative investments.
Bitcoin would be considered an alternative investment as it exists outside of the traditional investment realm, being a digital asset.
