The bond yields across most developed economies have dropped sharply since the central banks unleashed a slew of measures to counter the economic crisis caused by the COVID-19 pandemic.
This could pose a challenge to the institutional investors who rely on the traditional 60/40 portfolio allocation between equities and fixed income instruments.
This week Fidelity Digital Assets also released its Bitcoin Investment Thesis report which details how a portfolio with a Bitcoin (BTC) allocation as low as one to three percent can beat the traditional allocation on various time scales.
Daily cryptocurrency market performance. Source: Coin360
The report also highlights how Bitcoin’s market capitalization could soar, even if it manages to attract a small portion of the alternative investment market which is currently valued at $13.4 trillion or the bond market which is worth over $50.3 trillion.
As of today, about 13 public companies have allocated nearly $6.8 billion in Bitcoin investments this year, according to data from