Fidelity Investments, one of the biggest asset managers in the world is making a another step towards Bitcoin.
The multinational investment giant has filled application with the US Securities and Exchange Commission (SEC) this week to create a new investment fund related to Bitcoin. As stated in the document, investments into new fund should start from $100k.
The new digital asset management fund will be called the Wise Origin Bitcoin Index Fund I and will be run by Peter Jubber, the president and director of the Fidelity Digital Assets unit. The fund will be following the Bitcoin market index and will be managed passively. This means, that there will be no active investment manager and the investments into funds do come through an index mutual fund or exchange-traded funds (ETF).
The Boston-based Fidelity has around $8.3 trillion of assets under management and is one of the biggest global players in asset management to support Bitcoin and digital assets. The investment hegemon began to explore blockchain and cryptocurrency space back in 2014. Moreover, it established Fidelity Digital Assets back in 2018 to manage digital assets for institutional investors or private wealth management advisory firms.
Institutions joining the game
Bitcoin and other digital assets have been offside the interest and adoption of big institutional players for quite some time. However, the situation is changing already as more and more traditional investors turn to digital assets as a hedge against inflation and a store of value.
The biggest digital asset investment manager Grayscale alone has been in control of nearly $6 billion worth of digital assets at the time of publishing. The firm has raised a record $900 million of total investment into its digital asset products during the second quarter of the year alone. This is almost two times more compared to the first quarter when Grayscale’s clients poured over $500 million into its digital asset trusts.
The interest from investors increases as Bitcoin becomes widely considered as a store of value and a hedge against inflation among institutional investors like traditional hedge funds, family offices, and other brokerage or trading firms.
Following the fast-growing digital asset trusts and funds, traditional financial institutions are also scouting the industry with various banks worldwide applying for cryptocurrency custody services.