Major US asset manager Fidelity has long been at the forefront of crypto adoption among institutional investors. The Institutional President of Fidelity, Michael Durbin, recently announced at a conference in New York that he expects more and more consumers to invest in digital assets. In fact, he actually encourages this.
Bitcoin adoption
According to the chief executive at Fidelity, which is one of the largest asset managers in the world with more than $4.5 trillion in assets under management, putting some money into the digital asset market is a wise choice for most investors. The Block.
“As digital assets extend beyond cryptocurrencies and other types of packaged tokens, or whatever the regulations facilitate for us, we think there will be increased funding for that portfolio construction. A foundation for getting more digital assets into end-user portfolios.”
Durbin does indicate that potential investors should be very careful. This is because the crypto market can of course be extremely volatile. The price of bitcoin (BTC) has historically risen or fallen by double digits in a day. Durbin therefore argues that investors should be conservative in assessing risk.
“What we’re bringing out to advisors is just being careful in your risk budget if you’re going to allocate money to bitcoin for alpha creation,” Durbin said. “It’s better to set aside a pretty meaningful amount of your risk budget, which may be defensible, but that’s kind of an evolution we need to get into.”
Although he issues a kind of warning, the underlying message is positive. He even recommends dedicating at least a small portion of a portfolio to investing in digital assets such as cryptocurrencies. That’s quite a bit, considering Fidelity is one of the largest financial companies in the world with an exemplary role within the markets.
Crypto Branch Fidelity Digital Assets
Yesterday was still in the bitcoin news read that Fidelity is also looking for reinforcements for the crypto branch of the company. this branch, Fidelity Digital Assets, plans to hire at least 100 new people. This while we see that many companies that are active within the crypto sector are forced to put people on the street.
