Most market participants should hold positions in Bitcoin, regardless of their beliefs, according to Matt Horn, head of digital asset strategies at Fidelity Investments, speaking on CNBC.
The expert addressed the issue of analysis paralysis, which plagues many traditional investors and asset managers when it comes to cryptocurrency investments.
“It’s challenging because many professionals can model every asset class with the wealth of data available. With digital counterparts, you don’t have that luxury […], and to me, that’s okay,” commented Horn.
The top executive explained that it is essential to “recognize the potential of this technology and position it accordingly.”
The Fidelity strategist explained that a small allocation of funds—within the range of 1–5%—would be small enough to minimize risk if Bitcoin were to fall to zero. At the same time, this portion would be large enough to capture any increase in its value and provide a hedge against inflation, he added.
Back in March, CIO of Bitwise Matt Hougan stated that several asset managers had already allocated 3% of client funds to invest in the leading cryptocurrency, with many more ready to do so soon.
Earlier, K33 calculated that by the end of the first quarter, 937 institutions had invested $11.06 billion in shares of spot BTC-ETFs in the US.