Research Study
Bitcoin Investment Thesis: Bitcoin's Role as an Alternative Investment
In the second part of our “Bitcoin Investment Thesis” series, we explore bitcoin’s role as an alternative investment that may provide portfolio optimization benefits
by Ria Bhutoria
October 12, 2020 • 27 min read
Executive Summary
At Fidelity Digital Assets®, we have conversations with people at distinct stages in their digital asset journey who are proactively working on their investment thesis, seeking validation of their thesis, or have yet to embark on the process. In response, we are compiling a series of reports to examine the perspectives driving interest and investment in bitcoin today and those that may evolve and gain traction in the future.
Bitcoin's Role as an Alternative Investment
Second Installment: Bitcoin Investment Thesis
In the second part of our "Bitcoin Investment Thesis" series, Bitcoin's Role as an Alternative Investment, we examine bitcoin's ability to provide optimization benefits in a portfolio. In our Institutional Digital Asset Survey earlier this year, we found that almost 60% of the investors surveyed who think digital assets have a place in a portfolio believe a bitcoin investment should be funded from the alternative asset segment of their portfolio. In this piece, we focus on this insight from our survey and discuss:
- Investors’ rationale for including alternative investments in a portfolio
- The growth in appetite for alternative investments
- The characteristics of bitcoin that may make it a sustainable portfolio diversifier
- Historical analysis of bitcoin’s impact on a portfolio
Bitcoin as an Aspirational Store of Value
First Installment: Bitcoin Investment Thesis
In case you missed it, the first installment of this series focuses on the narrative of Bitcoin as an Aspirational Store of Value. This report explores the belief that bitcoin can offer asymmetric upside if retail and institutional investors widely adopt it as a store of value.
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