Fidelity Report says Trillions May Enter in Bitcoin Market
Fidelity Digital Assets, a cryptocurrency subsidiary of mutual fund giant Fidelity Investment, takes a chance on how trillions of dollars flow into Bitcoin.
As per the current director of research Ria Bhutoria, there are many hopes that Bitcoin will most probably follow the path of emerging markets.
Although the report by Bhutoria also highlighted the emerging and borderline equities that were diversified in the global portfolio have been subsequently increased over the past decades.
Further, she said that at most times it’s probable that an emerging market will have much more growth returns when compared to there already matured markets the reason being incoming higher growth prospectives, being more volatile and less liquid.
The acceptance of bitcoin in institutional portfolios is comparable to the acceptance of developing and border equities in portfolios in the late 1980s and early 1990s. Concerns about factors such as volatility and liquidity have led to resistance to include emerging markets. ”
While in an estimate made by Bhutoria showed that even if just one percent from the $50 trillion bonds enters the Bitcoin market would be enough to significantly boost the market cap of the flagship currency.
After two cycles of high returns, emerging markets now account for 11 percent of the $43 trillion global equity market.
Although in spite of the growing interest of institutional investors, Fidelity still believes that the bitcoin market is heavily dominated by retailers than investors.
