Fidelity backs Bitcoin for portfolio diversification

6.9 Investments

Oct 2, 2026

Fidelity sees Bitcoin as a key portfolio diversifier due to its low correlation with stocks and bonds, grouping it with gold and commodities. The recent move above $80,000 is seen as significant.

Fidelity Investments, a major financial institution, has recognized Bitcoin as a vital asset for diversifying portfolios beyond traditional stocks and bonds. Jurrien Timmer, a Fidelity representative, places Bitcoin alongside commodities, gold, cash, and leveraged loans as important diversification tools. Timmer's research shows that Bitcoin’s five-year correlation with the S&P 500 is about 30%, and its correlation with long-term U.S. Treasuries is nearly zero. This suggests that Bitcoin behaves differently from these conventional assets, making it a unique addition to investment strategies. He has updated the classic 60/40 portfolio model to a 60/20/20 allocation, dedicating 20% to alternative assets such as Bitcoin, gold, commodities, REITs, and managed futures. Timmer also notes that Bitcoin’s recent rise above $80,000 is technically significant, potentially confirming a double-bottom pattern with a target near $100,000. Despite ongoing volatility, Fidelity sees Bitcoin’s low correlation with stocks and bonds as a valuable trait for diversified portfolios.