Bitcoin to Absorb 1% of All Global Wealth
If you were lurking around Bitcoin X (Twitter) today you may have been surprised to see that the top story had nothing to do with the fact that the price of bitcoin woke up from its slumber, rising ~3.5% to $44,500.
The top story in fact had to do with the fact that Fidelity Assets Canada updated their All-In-One ETF products to include a minor exposure to the
Fidelity Advantage Bitcoin ETF® (FBTC).
Fidelity Digital Assets has applied a 1% Bitcoin exposure to their Conservative Fund (40% Equities, 60% Bonds), a 2% exposure to their Balanced Portfolio (60/40), and a maximum of a 3% exposure to their Growth (80/20) and Equity Portfolios (100/0).
To me, the amazing part of this story is not the maximum 3% Bitcoin exposure, the incredible part is the exposure in the Conservative Portfolio…
People who invest in Conservative Portfolio are the furthest ‘in’ on the risk curve, those who are either very close to retirement, uneducated about investing, or looking to achieve a safe, and dependable return which won’t go down. These people are being directed, by their asset manager, to assign 1% of their portfolio to Bitcoin. Incredible.
Bitcoin’s Performance
It’s not hard to see why Asset Managers will be guiding their clients towards Bitcoin. Despite the infamous volatility which can scare away many conservative investors, Bitcoin has managed to eclipse other asset classes over the past decade. In fact, it has been the best-performing asset class for eight out of the past eleven years.
Now, time to take a closer look at Bitcoin’s historical returns for various holding periods (as of December 31, 2023):
- 1 year: 156.62% return
- 3 years: 50.00% return
- 5 years: 999.77% return
- 7 years: 5,147.10% return
