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<a href="https://www.thestreet.com/crypto/markets/fidelity-digital-assets-wants-crypto-investors-to-take-a-bitcoin-first-approach" rel="noopener noreferrer nofollow">Fidelity Digital Assets</a>, a&nbsp;subsidiary of Fidelity Investments, <a href="https://www.fidelitydigitalassets.com/research-and-insights/getting-zero-evaluating-bitcoin-2026" rel="noopener noreferrer nofollow">released</a> a research study on Apr. 25 in which it unveiled the hidden driver behind a traditional portfolio's return rising over the last 10 years.
While investment advisors would traditionally recommend avoiding cryptocurrency in the portfolio, the new study reveals something new.
In its latest study titled “Getting Off Zero: Evaluating Bitcoin in 2026,”&nbsp;Fidelity Digital Assets&nbsp;argues that investors may now need to justify not owning <a rel="noopener noreferrer nofollow">Bitcoin </a>(BTC).
<blockquote>
 "The central question is no longer whether bitcoin deserves consideration in a portfolio, but rather: What is your current bitcoin allocation, and why?"
</blockquote>
<a href="https://www.thestreet.com/crypto/markets/analyst-shares-new-bitcoin-prediction-for-all-of-2026-" rel="noopener noreferrer nofollow">Related: Analyst shares new Bitcoin prediction for all of 2026</a>
<h2 id="shift-in-burden-of-proof">Shift in burden of proof</h2>
The study's core argument rests on performance data that has become increasingly difficult for institutional investors to ignore.
According to the report, Bitcoin has been the top-performing asset in 11 of the past 15 years, while also delivering the strongest risk-adjusted returns across major asset classes over both 5- and 10-year periods.
<figure><a href="https://www.fidelitydigitalassets.com/research-and-insights/getting-zero-evaluating-bitcoin-2026" rel="noopener noreferrer nofollow"></a>
</figure>
Bitcoin’s return is the highest over the past 10 years, but so is its risk, the study concluded. <a href="https://www.thestreet.com/crypto/markets/major-gold-holders-stockpile-hits-nearly-20-billion" rel="noopener noreferrer nofollow">Gold</a> and U.S. stocks have also performed very well but <a href="https://www.thestreet.com/crypto/markets/former-treasury-secretary-warns-vicious-bond-crash-coming-soon" rel="noopener noreferrer nofollow">bonds </a>have generated very low returns.
The study said that Bitcoin has historically produced more “good volatility” than damaging drawdowns, resulting in a return profile skewed toward gains.
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<h2 id="portfolio-diversifier">Portfolio diversifier</h2>
As per the report, Bitcoin’s most recognized characteristic is its ability to provide non-correlated and "idiosyncratic"&nbsp;returns relative to traditional assets.
Bitcoin's scarcity and network effects drive medium- and long-term returns independent of the relation to broad equity and credit markets. It means it has reduced correlations to other assets, the study said.
As per the study, Bitcoin can be looked upon as a "historically complementary" asset for many traditional portfolios.
<figure><a href="https://www.fidelitydigitalassets.com/research-and-insights/getting-zero-evaluating-bitcoin-2026" rel="noopener noreferrer nofollow"><img src="https://www.thestreet.com/.image/c_fit%2Ch_675%2Cw_1200/MjIzMTMwNTI1Nzg1NjYzMjAy/fda_gettingoffzerorevisited_10yrassetclasscomparison-01.png" height="675" width="728"></a>
</figure>
<h2 id="small-allocations">Small allocations</h2>
The findings help explain why even modest exposure can have an outsized impact on portfolio performance.
The broader research highlights that allocating only a small portion of a traditional 60/40 stock-bond portfolio to Bitcoin has historically boosted returns significantly. The study looks at these returns against volatility.
The Sharpe and Sortino ratios measure risk-adjusted returns, helping investors evaluate if an investment's returns justify its risk. As per the study, the most significant improvement in these ratios occurred when Bitcoin allocation increased from 1% to 3% over the past 10 years.
Though returns have lowered over the last five years,&nbsp;the broader pattern remains intact.
Investors have historically taken funds from either side of the portfolio for Bitcoin allocation, though funding tends to more commonly come from equities.
Since&nbsp;investment managers consider Bitcoin “risky,” they&nbsp;allocate it within the “risk” equity asset bucket. But some managers&nbsp;are increasingly viewing portions of the bond allocation as more of a liability or drag, the study said.
<blockquote>
 "Empirically, higher returns were incurred when the bitcoin allocation was funded from the bond portion of the portfolio."
</blockquote>
<figure><img src="https://www.thestreet.com/.image/c_fit%2Ch_675%2Cw_1200/MjIzMTMwNzc3MDQxMjUwMDY5/fda_gettingoffzerorevisited_10yrassetclasscomparison-01.png" height="658" width="1200">
</figure>
The study argued that it should not be surprising because&nbsp;stocks have performed well of late, in contrast to the weaker performance of bonds.
Fidelity Digital Assets clarified that&nbsp;the 10% allocation was chosen not as a recommendation, but to magnify the differences across funding sources.
Morgan Stanley's&nbsp;head of digital assets&nbsp;Amy Oldenburg also <a href="https://bitcoinmagazine.com/news/morgan-stanley-executive-on-bitcoin" rel="noopener noreferrer nofollow">recently underlined</a> that the bank recommends 2%-4% Bitcoin allocation to clients, but there is&nbsp;slow adoption among advisors due to what she called an "education problem."
She even said it&nbsp;expects Bitcoin to reach U.S. bank balance sheets, though a few hurdles remain.
<a href="https://www.thestreet.com/crypto/markets/major-gold-holders-stockpile-hits-nearly-20-billion" rel="noopener noreferrer nofollow">Related: Major gold holder's stockpile hits nearly $20 billion</a>
<h2 id="not-without-risks">Not without risks</h2>
Still,&nbsp;Fidelity Digital Assets&nbsp;stops short of presenting Bitcoin as a risk-free addition.
The firm notes that price cycles, volatility, and potential sell-offs remain key risks for investors to consider.
Timing matters as well. Short-term investors may face more uncertainty, especially if the asset enters a cyclical cooling phase.
<h2 id="investors-in-60-40-portfolio-could-consider-bitcoin">Investors in 60/40 portfolio could consider Bitcoin</h2>
Fidelity’s message is less about urging aggressive buying and more about reframing the conversation.
For years, Bitcoin was treated as an outlier requiring justification for inclusion. Now, according to one of the world’s largest asset managers, the opposite may be true.
The study said it expects the traditional 60/40 portfolio to face structural challenges, which could prompt investors to consider alternatives such as Bitcoin.
Disclaimer:&nbsp;This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.
<a href="https://www.thestreet.com/crypto/markets/analyst-who-predicted-2021-crash-says-markets-were-better-off-with-powell" rel="noopener noreferrer nofollow">Related: Analyst who predicted 2021 crash says 'markets were better off with Powell'</a>

Fidelity unveils hidden driver behind portfolio return surge

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