Fidelity Digital Assets, a subsidiary of Fidelity Investments that provides a platform for large institutional parties to secure, trade and store digital assets, recently achieved a very exciting milestone with its Bitcoin (BTC) investment fund.
Number of Fidelity bitcoin investors from 83 to 689
The Wise Origin Bitcoin Index Fund was released in August 2020. This provided Fidelity clients with the opportunity to get a position in bitcoin. The minimum investment for this fund has been set at $50,000. Almost nine months later there was already raised $102 million with 83 investors.
In the two years that Fidelity launched the Investments bitcoin index fund, it has raised quite a bit of money. Unfortunately, this idea turned out to be a little less popular than initially thought. Fidelity’s figures show that less and less is being invested in the fund every year.
Nevertheless, the fund managed toaccording to the most recent SEC filing which published on Monday has now raised $126.5 million. Although this is a nice number, it clearly shows that growth is decreasing. However, the number of investors is still growing very fast. Where it used to be 83, there are now 689.
In earlier crypto news
Fidelity also announced in April that it will offer its clients the option of saving for retirement through bitcoin. Fidelity clients can then add bitcoin to their 401(k) after the employer approves it.
Although this initially seems like a very interesting idea, there was a lot of resistance from official bodies. Ali Khawar, top official of the US Treasury Department, has indicated that there are very many risks involved since it concerns someone’s pension. Because there is a lot of hype around bitcoin and it is a ‘speculative asset’, this would not suit a pension. Still, Fidelity continues with this idea and they think it’s the future.