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Fidelity Investments, an asset management company with about $2.7 trillion of assets under management, will reportedly launch its first Bitcoin-only fund.
The product is oriented toward family offices, registered investment advisers, as well as other institutions and will require a minimum investment of $100,000.
Fidelity Puts Its Name to a Bitcoin Fund
Fidelity Investments is the world’s 5th largest asset management company with $2.7 trillion worth of assets under management according to information from Statista.
In a report dated August 27th, Bloomberg revealed that the firm is launching its very first Bitcoin fund and will add its star power and establishment name to the cryptocurrency.
According to a filing with the Securities and Exchange Commission (SEC), the company will begin offering the Wise Origin Bitcoin Index Fund I through a new company called Fidelity Digital Funds. The product will be managed by Peter Jubber, head at Fidelity Consulting.
The documents also reveal that the Bitcoin-only fund will be managed passively and that it will be available to qualified investors such as family offices, institutions, and registered investment advisers. There’s a minimum investment threshold set at $100,000.
In an email to Bloomberg, Fidelity commented that:
“Fidelity has made a long-term commitment to the future of blockchain technology to making digitally-native assets, such as Bitcoin, more accessible to investors.”
Smart Money’s Venturing Into Crypto
This is not Fidelity’s first testament to the validity of cryptocurrencies and Bitcoin, in particular. As CryptoPotato reported earlier in July, the company’s crypto arm, Fidelity Digital Asset, highlighted Bitcoin as a store of value that continuously attracts new investors.
It appears that the latest push is part of a broader attempt by the asset manager to expand its presence in the market. Last year Fidelity extended its cryptocurrency services in Europe.
In any case, institutional interest is only growing stronger over the past couple of months. Just a couple of weeks back, MicroStrategy, a NASDAQ-listed company announced the purchase of $250 million worth of Bitcoin as part of its asset allocation strategy. The merits behind the move hide mainly in Bitcoin’s scarcity, allowing it to serve as an effective hedge against inflation.