UBS: Bitcoin fundamentals remain weak

UBS analyst stated that the approval of the first Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission last week has expanded the channels for investors to invest in Bitcoin. However, despite the increased accessibility and ease of secure storage of digital assets, the fundamentals of Bitcoin remain weak. Currently, the application of cryptocurrencies in the real world is still limited. Cryptocurrencies can significantly increase the volatility of investment portfolios. For example, even if only 10% of the portfolio is allocated to Bitcoin in a balanced investment portfolio, it would still result in about 50% volatility in this wealth strategy. Concerns about sustainability still exist due to the high energy consumption of Bitcoin.