Investment Giant AllianceBernstein Now Says Bitcoin Has Role in Investors’ Portfolios

CRYPTONAIRE LYWEEK

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Investment Giant AllianceBernstein Now Says Bitcoin Has Role in Investors’ Portfolios

The research arm of New York-based AllianceBernstein, a global investment manager with $631 billion in assets under management, has had a change of heart when it comes to bitcoin as an investment asset.

In a research note produced for clients, seen by CoinDesk, Inigo Fraser Jenkins, co-head of the portfolio strategy team at Bernstein Research, said the firm had previously ruled out bitcoin (BTC, +4.07%) as an investment asset back in January of 2018, soon after bitcoin had hit its all-time high close to $20,000.

But post-pandemic changes to the policy environment, debt levels and diversification options for investors mean the asset manger now has “to admit [bitcoin] does” have a role in asset allocation, at least over the long term.

Fraser Jenkins said the “significant reduction” in the volatility of bitcoin’s price makes it more attractive both as a store of value and as a medium of exchange. The pandemic has also seen a rise in bitcoin’s correlation with other major assets. On the other hand, he said, bitcoin is a liquid asset and can be quickly sold off, as happened during the March markets crash. Read more...