Adding just 1% Bitcoin to portfolios can boost returns by up to 30%, says Fidelity.

Fidelity highlights Bitcoin as a valuable asset for modern portfolios due to its strong long-term returns and diversification benefits. Their analysis shows that including just 1% Bitcoin in a traditional 60/40 stock-bond portfolio can increase compounded returns by about 30% and improve risk-adjusted returns by 20%, with limited impact on drawdowns. Bitcoin's low correlation with traditional assets and potential as an inflation hedge make it an effective diversifier. Corporate treasury portfolios see even greater benefits, with a 1% Bitcoin allocation more than doubling returns and improving risk metrics significantly.