- ARK suggests investors looking to maximize profit hold Bitcoin in their portfolio.
- Bitcoin has averaged around 44% annual return for holders, higher than the 5.7% average by other assets.
- ARKInvest’s report highlights that Bitcoin has become a viable alternative to traditional investment products.
In the latest edition of its Big Ideas report, investment asset manager ARKInvest has highlighted why the flagship cryptocurrency, Bitcoin, has become a viable alternative asset to traditional investment products.
Indeed, ArkInvest outlined that despite the volatile nature of Bitcoin, it still continues to outperform other asset classes. In the past seven years, ARK’s research indicates that Bitcoin has given investors a better return than alternative assets.
Specifically, the pioneering cryptocurrency has averaged around 44% annual return for holders. Conversely, other major assets have averaged 5.7%. The report suggests that investors looking to maximize profits should allocate around 19.4% of their portfolio to Bitcoin.
Meanwhile, ARK observed that Bitcoin’s price continued to grow even during times of turbulence in the traditional market. For instance, the research noted that during the historic collapse of U.S. regional banks in early 2023, Bitcoin’s price grew more than 40%, highlighting its role as a hedge against counterparty risk.
Furthermore, ARK noted that Bitcoin is evolving into a reliable risk-off asset. “With increasing macroeconomic uncertainty and less trust in traditional “flights to safety,” Bitcoin has become a viable alternative,” the report detailed.
Elsewhere, ARK highlighted the major catalysts for Bitcoin’s growth in 2024. Notably, the research outlined the strategic importance of spot Bitcoin exchange-traded funds (ETF), especially in onboarding investors from the traditional space.
Additionally, the report pointed at the upcoming Bitcoin halving as a bullish catalyst for the digital asset. The report noted that the regulatory developments on digital asset regulations in several jurisdictions will also aid Bitcoin’s development.
ARK’s research underscores prevailing sentiments in the crypto market this year. With the ETF launches and the halving, expectations are that Bitcoin could notch a new all-time high this year. Furthermore, the market also sees the onboarding of traditional investors into crypto as a bullish catalyst for the entire ecosystem.
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