Friday, July 30, 2021

Fidelity Investments Launches Bitcoin Fund

Fidelity Investments Launches Bitcoin Fund

Fidelity Investments has announced that it is launching a Bitcoin fund with a $100,000 minimum investment. The new fund will be made available soon and that it will be run by Peter Jubber, the head of Fidelity Consulting.

The fund will be called the Wise Origin Bitcoin Index Fund I, LP and will be a passively managed Bitcoin-only fund. This fund has been placed under a new entity under Fidelity called Fidelity Digital Funds. The new entity hints at further expansion of crypto-related investment funds. 

The Bitcoin fund will only be available to qualified investors through family offices, registered investment advisers, and other institutions.

Fidelity has made a long-term commitment to the future of blockchain technology. Also, Fidelity pledges to making digitally native assets, such as Bitcoin, more accessible to investors.

In 2017, during the speech at the Consensus Conference, Fidelity’s CEO Abigail Johnson said: “The internet wasn’t just a more efficient way to send letters – it spawned new industries.

Blockchain technology isn’t just a more efficient way to settle securities – it will fundamentally change market structures – and maybe even the architecture of the internet itself.”

A year later, Fidelity launched its Digital Assets arm of the business. With her sentiment, and effectively Fidelity’s as well, it is not so surprising that Fidelity has taken this route and now created a Bitcoin fund for its clients.

Abigail known as a strong proponent of blockchain technology and cryptocurrency in general. 

Fidelity Bitcoin Fund a hopeful news to the Blockchain World

Fidelity making this move is hopeful news to Bitcoin and blockchain advocates. Especially since banks typically avoid the crypto space due to the lack of regulatory clarity.

Many mainstream wall street companies have only slightly dabbled in the crypto space. JP Morgan (JPM) created its own U.S. dollar stablecoin, Goldman Sachs (GS) recently appointed a new head of digital assets. Many others have also created custodial services for crypto.

Although a number of mainstream firms have dabbled, not so many have gone ahead and created fully-fledged crypto-related products. That said, there are a growing number of companies offering crypto funds.

Related: Cryptocurrencies Taxes to be Stricter in South Africa

Most notably are Grayscale Investments LLC and former Goldman Sachs partner Michael Novogratz’s Galaxy Digital. Grayscale, specifically, has shown monumental growth and now has over $5.2 Billion in assets under management. 

This growing number of crypto-first investment companies and evidence of existing mainstream finance firms creating digital asset products, like Fidelity, points to a slow but consistent trend of adoption and investment into cryptocurrencies.

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