In this video, Pratik Kala from DigitalX talks about the history of fiat currencies, Bitcoin, its role in a traditional 60/40 portfolio. and how it can offer superior returns with lower volatility. He also argues why getting off a zero allocation is prudent for money managers in the polarised world we live in today.
Cryptocurrencies must surely be the most polarising asset class in the modern financial era. On the one hand, they promise decentralised finance, immutable digital money, and permissionless innovation.
Bitcoin is now much easier to own for Aussie investors thanks to the ASX listing of the first such ETF last week. The move follows the lead of the US market, which opened the door to bitcoin ETFs in January this year. Investors have since poured billions of dollars into cryptocurrency ETFs, with US bitcoin ETFs collectively amassing over $57 billion of inflows within three months of launch, including offerings from BlackRock, Fidelity Investments, and VanEck.
One of the longer term criticisms of the active fund management industry is its chronic underinvestment in product research and innovation. But time catches up with all of us. There was only so long active fund managers were going to avoid investing in products which match up with modern day investors’ needs and expectations.