Fidelity's director of global macro: bitcoin is 'worth considering for inclusion in a portfolio'

Given the current economic backdrop, investors might want to start considering adding bitcoin to their portfolio, argues Jurrien Timmer, the director of global macro at Fidelity Investments.

In a note titled "Understanding Bitcoin," Timmer — a 26-year veteran of the asset management giant — said that bitcoin could be seen as a form of "digital gold" and could offer protection against inflation. 

"In my view, some investors may wish to consider bitcoin, alongside other alternatives, as one component of the bond side of a 60/40 stock/bond portfolio," he said. Fidelity oversees over $9.8 trillion in total customer assets

The statement adds to an ongoing wave of support for bitcoin from big-name investors, like Paul Tudor Jones and Anthony Scaramucci, who see it as a gold-like asset. The essay also reflects the growing chorus calling for the end of the traditional 60/40 portfolio allocation. 

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"In a 60/40 stock/bond world, gold and bitcoin are poised, in my view, as potential disruptors to the 40 side of the allocation," Timmer said. 

Timmer also highlighted Bitcoin's limited supply as a unique attribute relative to gold.

"We know that bitcoin's supply growth is flattening. Note how the production of gold has been quite steady throughout the years: No asymptote here!"

Source: Fidelity

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Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].