BlackRock has seen over 600,000 hits on its website for Bitcoin, with COVID-19 and ‘Monetary Policy’ being the joint second-highest at just 3,000 hits each.
4% Bitcoin Portfolio Allocation
Masters believes that companies that invest in Bitcoin are getting an edge over their rivals. He cited MicroStrategy, Square and PayPal, all of whom have outperformed the market. The CoinShares boss believes that this is as a result of these companies going public with their exposure to Bitcoin.
CoinShares has grown to become one of the public companies with the largest Bitcoin portfolios. As Coinspeaker reported, the firm hit the $1 billion landmark in assets threshold in August. Through its XBT Provider suite of cryptocurrency exchange-traded products, the firm allows clients to invest in Bitcoin and Ethereum without owning the actual cryptos.
According to CoinShares’ research, a balanced investment portfolio should have a 4% allocation to Bitcoin, Masters told CNBC. This has some great “performance and diversification benefits,” he stated.
On why Bitcoin has surged in 2020, including setting a new all-time high, Masters stated:
“It’s driven by the narrative and the drive for inflation-resistant investments. It’s driven by digitization because Bitcoin is a digital store of value. It’s driven a bit by the fact that people are now a little bit more accepting of the volatility, and that’s come about partly because Bitcoin’s volatility is been steadily declining over the last few years. Other asset classes have also proved to be more volatile than people expected.”
