Fidelity Investments, one of America’s largest mutual funds, is now officially advising clients to invest in crypto. Fidelity’s website shows that the fund recommends an allocation to cryptocurrencies for all “all-in-one” ETFs, both conservative and growth portfolios.
Fidelity recommends crypto for all portfolios
For the conservative portfolio, Fidelity recommends a 1 percent allocation to crypto. For “all-in-one growth” and “all-in-one equity” funds, this percentage is as high as 3 percent. Here’s what Fidelity says about crypto on its website:
“Get strategic exposure to cryptocurrencies (1-3 percent depending on the fund) for better diversification. A small allocation to cryptocurrencies in your portfolio can potentially provide you with higher returns and act as a hedge against traditional markets.”
Fidelity’s “crypto allocation” means an allocation exclusively in Bitcoin (BTC). A closer look at the fund information shows that the crypto allocation refers to Fidelity’s Bitcoin spot exchange-traded fund (ETF). This could change in the future with the possible launch of Ethereum (ETH) spot ETFs.
What does Fidelity’s move mean?
Will Clemente, a well-known crypto personality, reacted to the news about X. He wonders what will happen if that 1-3 percent grows to 3-6 percent. He suggests that crypto markets could grow very quickly.
Another answer notes that Fidelity’s allocation change only applies to the Canadian arm of the fund. Still, it’s a strong sign and it wouldn’t be a surprise if other funds also started considering a crypto allocation as a standard for their funds.
The same answer also states that things will only really move quickly when the world’s largest investment fund, Blackrock, adopts such an allocation. However, so far there are no signs of this.
So it’s not big news for now. However, it could be a harbinger of what the future will bring. The US Bitcoin spot ETFs are obviously a huge success and a standard allocation in investment portfolios would therefore be a natural step.