Fidelity Digital Assets says the most important portfolio decision isn't how much bitcoin to buy. It's going from zero to any. Their data shows that adding just 1% bitcoin to a traditional 60/40 portfolio produced 30% more compounded value over the study period, increased risk-adjusted returns by 20%, and only increased maximum drawdown by 0.27%. The first 50 to 100 basis points of bitcoin allocation delivered the most efficient improvement in portfolio performance. After that, returns scale but so does volatility. The initial move off zero is where the math is most lopsided. The corporate treasury findings are even more striking. A 1% bitcoin allocation to a standard corporate bond portfolio more than doubled returns, actually reduced overall drawdown, and increased the Sharpe ratio by over 40%. For companies sitting on cash reserves earning next to nothing in a negative real rate environment, Fidelity is saying the risk of holding zero bitcoin is greater than the risk of holding some. The report also found that where you source the allocation from barely matters. The difference between funding it from stocks versus bonds was 0.11% in returns and 0.13% in volatility for a 1% position. The decision that moves the needle is binary: zero or not zero. Fidelity manages over $5 trillion in assets. This isn't a bitcoin company talking its book. It's one of the largest asset managers in the world telling institutional clients that the data favors allocation, and that the biggest risk in a portfolio may be having none at all.

Holy smokes. This is the arguably the most important full throated endorsement of crypto from TradFi world since Larry Fink. This guy is Mr RIA. Manages $300b for 1.3million clients. Tops the Barron’s list of America Advisors regularly.

It must be said: For those that don’t know him, @ricedelman has a multi-decade track record of seeing things before everyone else and being right.

TODAY: The infrastructure for the next wave of RIAs is being built with bitcoin, stablecoins, and tokenized assets. @ricedelman and @SmartestBeta of @coinbaseinsto explain what it means for advisors. 📆 Today, 1pm ET 🎧 Set a reminder: bit.ly/4mjW9ML

Prudent decision by @realDonaldTrump to create a #bitcoin reserve w/#BTC that was forfeited as part of criminal or civil asset forfeiture proceedings. This assures no selling (@davidsacks47 says cost U.S. taxpayers over $17B in lost value) & no incremental costs on our taxpayers.

Hats off to @USOCC and Acting Comptroller of the Currency Rodney E. Hood for publishing Interpretive Letter 1183. Bye, bye #OperationChokePoint2! This is capitalism in motion!

.@paulkrugman is spewing misinfo about @realDonaldTrump's EO referring to it as a "crypto" strategic reserve (it's bitcoin only) & saying the gov't is buying coins to create the reserve It's only bitcoin that was forfeited as part of criminal or civil asset forfeiture proceedings

I'm told today's sell-off in $nvda is the largest in mkt. history. For a contrarian like me, I just had to get in. Wish me luck.

.@ricedelman at @TheBitcoinConf in #Nashville last week - if you think #bitcoin is a fad, think again! #bitcoin2024