Fidelity's Head of Global Macro Says Bitcoin May Have Place in Some Portfolios

"Is it any wonder that bitcoin seems to be having its day?" Fidelity's global macro chief said.

AccessTimeIconMar 1, 2021 at 5:39 p.m. UTC
Updated Sep 14, 2021 at 12:19 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The bullishness shown by Fidelity Investments' cryptocurrency-focused arm appears to be spreading to the rest of the investments giant, with Director of Global Macro Jurrien Timmer now comparing bitcoin directly to gold.

  • Timmer told investors in a February research note that bitcoin may be emerging as a legitimate hedge against inflation and stable store of value as a form of "digital gold." "In my view, bitcoin has gone mainstream."
  • What's noteworthy here is Timmer is not part of the investment giant's digital assets arm that is, almost by remit, disposed to be pro-crypto. Instead, he's part of the broader company and his pro-bitcoin report speaks to the cryptocurrency's increasingly warm welcome on Wall Street.
  • Grappling with how to model the cryptocurrency, Timmer noted that, if evaluated against simple supply and demand metrics, demand continues to grow "exponentially" while supply remains fixed. That scenario does not apply to gold, whose annual production has remained steady over time. "Bitcoin supply, by design, is finite."
  • He said the monetary environment naturally favors bitcoin. "With interest rates close to zero – or negative – and central banks printing money like there's no tomorrow, is it any wonder that bitcoin seems to be having its day?"
  • While Timmer admitted bitcoin's risks – including volatility – may not amount to a "prudent" investment choice for all, he said it could nonetheless find a home in the bonds slice for certain portfolios. "For those investors, the question of bitcoin may no longer be 'whether' but 'how much?'"
  • He also said that he expects bitcoin "over time" will take more market share from gold.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about