SkyBridge Founder: "Bitcoin has a lot of room for growth, but we recommend small holdings for individual investors"

Individual investors don't need to allocate large portions of their portfolios to Bitcoin to take advantage of the cryptocurrency's rise, Anthony Scaramucci, founder of alternative investment firm SkyBridge, told Bloomberg TV, according to Business Insider.

In his opinion, an exposure of 1-3% of the portfolio is sufficient, even if more aggressive investors prefer to reach 5%.

"I agree that Bitcoin is a store of value. It's effectively digital gold," said Scaramucci, who was also White House Communications Director. Through this comparison, the SkyBridge founder pointed out that the valuation of the Bitcoin market could reach twelve trillion dollars, according to Business Insider.

Yesterday, in the early part of the day, Bitcoin's market capitalization was around $820 billion, according to CoinMarketCap.

"Bitcoin has a lot of room (no growth) ahead, but we recommend small holdings for individual investors," Scaramucci said.

His investment firm started with a 5 percent exposure to Bitcoin, which he increased as the cryptocurrency appreciated, he said. Since the beginning of the year, the world's most famous digital currency has increased by around 150%, with a strong rally in the last month, which appeared against the background of the excitement created by the prospect of the launch of some Bitcoin spot ETFs and the so-called "halving" of the miners' rewards, which will take place in 2024.

The expectation is that, if approved by the Securities and Exchange Commission (SEC - the US market regulator), spot Bitcoin ETFs will bring new demand to the market, which will favor price growth. Also, the elements related to the offer, such as the "halving" in April next year, are likely to support the appreciation of the cryptocurrency, according to Business Insider.

Scaramucci says Bitcoin must be a long-term investment, it will help diversify portfolios and reduce correlation risk.

"If we are right, it will have a positive impact on the portfolio; it will provide some lack of correlation with some of the other assets. If we look at Bitcoin's monthly returns this year, we see that even when the S&P was not doing well, Bitcoin did well. And over time I think it has a decoupling effect from the stock market and the bond market," Scaramucci said on Bloomberg TV, quoted by Business Insider.