Asset Managers Continue to Embrace Bitcoin as Key Portfolio Diversification Tool: QCP

cryptonews.com:

Recognizing the potential benefits of Bitcoin‘s role as a portfolio diversifier, asset managers have been actively increasing their Bitcoin allocations.

In a recent note, crypto asset trading firm QCP Capital revealed that asset managers continue to add Bitcoin allocations as a “portfolio diversifier.”

Additionally, requests for structured products such as Accumulators and FCNs have flooded in, revealing a strong appetite for diversifying investment portfolios with BTC, the Singapore-based crypto firm wrote. 

⁠”Anecdotally, wealth desks at major banks have been pleasantly shocked at the tremendous demand from clients for BTC spot ETFs, along with requests for structured products like Accumulators and FCNs.”

QCP: Wealth desks at major banks have been pleasantly shocked at the tremendous demand from clients for BTC spot ETFs, along with requests for structured products like Accumulators and FCNs. Asset managers also continue to add BTC allocations as a “portfolio diversifier”.…

— Wu Blockchain (@WuBlockchain) March 26, 2024

Bitcoin has recently surpassed $70,000 following news that the London Stock Exchange plans to introduce Exchange-Traded Notes (ETNs) for BTC and ETH in May.

However, QCP expects the leading cryptocurrency to maintain momentum, breaking all-time highs and potentially reaching the coveted $100,000 mark. 

It noted that amidst the unpredictable nature of the market, Bitcoin’s ability to offer potential returns independent of traditional assets has become an attractive proposition for these managers.

Meanwhile, the potential for Bitcoin to continue its upward trajectory may hinge on broader macroeconomic factors. 

Unless there is a significant shift toward risk aversion in the market, many analysts