Fidelity has announced that it is launching a Bitcoin fund with a $100,000 minimum investment. In a filing to the Securities and Exchange Commission, Fidelity said that this new fund will be made available soon and that it will be run by Peter Jubber, the head of Fidelity Consulting.

Key Takeaways

  • Fidelity to launch a Bitcoin-only investment fund with a $100,000 minimum investment.
  • The fund will be available to qualified investors through family offices, registered investment advisers, and other institutions.
  • New Fidelity branch called Fidelity Digital Funds hints at further expansion of crypto-related investment funds.

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, hinting at further expansion of crypto-related investment funds. 

The Bitcoin fund will be under the custody of Fidelity Digital Assets and only be available to qualified investors through family offices, registered investment advisers, and other institutions.

Bloomberg reported an email from Fidelity saying that “Fidelity has made a long-term commitment to the future of blockchain technology and to making digitally-native assets, such as Bitcoin, more accessible to investors.”

It is known that Abigail Johnson, the current CEO of Fidelity, is a strong proponent of blockchain technology and cryptocurrency in general. 

In a 2017 speech at the Consensus Conference, she 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 Fidelity 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.

With banks typically avoiding the crypto space due to the lack of regulatory clarity, Fidelity making this move is hopeful news to Bitcoin and blockchain advocates.

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, and many others have created custodial services for crypto.

Though 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. 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.

Cryptocurrency Performance: Year-to-Date

Crypto market YTDs
  • Bitcoin (BTC) YTD: +56.46%
  • Ethereum (ETH) YTD: +189.22%
  • Ripple (XRP) YTD: +35.07%
  • Chainlink (LINK) YTD: +259.27%
  • S&P 500 YTD: +8.24%

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