In brief

• Fidelity’s Bitcoin Investment Thesis research shows that Bitcoin has extremely low correlation with other assets like stocks or gold.

• The report recommends allocating 5% of a multi-asset portfolio to Bitcoin.

• Fidelity has been a consistent supporter of Bitcoin and other digital assets.

Bitcoin has behaved unlike any other investment asset available in the market over the past five years, acting on average almost entirely independently, according to financial services giant Fidelity.

Fidelity Digital Assets, the cryptocurrency-focused arm of Fidelity, said today in a report that Bitcoin has almost no relationship to returns produced by other asset classes, including gold and US stocks. 

What’s more, its report, part two of the firm’s Bitcoin Investment Thesis, suggests investors keep 5% of their holdings in Bitcoin as exposure to alternative investments. It’s another sign that institutions are warming up to digital gold and are taking note of its ability to provide uncorrelated returns in spite of external conditions.