Fidelity is about to launch a new fund on Bitcoin

The American financial giant Fidelity has informed the SEC of a new fund dedicated to bitcoin.

The documentation reveals that the fund is called Wise Origin Bitcoin Index Fund I, LP, and was presented by Peter Jubber, president and director of FD Funds GP LLC. The same documentation also reveals that the project involves Fidelity Brokerage Services LLC and Fidelity Distributors Company LLC, two companies of the Fidelity group.

Fidelity Investments is an American multinational company based in Boston, and is also one of the largest asset managers in the world, with nearly two and a half billion dollars of assets under management, and a total value of their clients‘ assets in excess of eight trillion.

Fidelity and the Bitcoin fund to enter the crypto world

The company has long been interested in the crypto sector, so much so that already at the end of 2018 it participated in the fundraising to finance the BlockFi project.

In May of last year it announced the possible launch of its own crypto trading platform, and in February of this year it published a report clearly favorable to Bitcoin.

In other words, the traditional American financial giant has decided to enter the crypto industry from the front door and in a big way, probably with the intention to provide regulated crypto currency services to those customers who want or need to use only this kind of services.

For example, the minimum fee to join the new bitcoin investment fund is $100,000, which indicates that it is a fund intended primarily for institutional and accredited investors.

On the other hand, in June Fidelity released the results of its own survey, carried out on 800 institutional investors in the United States and Europe, which revealed that more than a third of the respondents had already invested in digital assets, and 60% said they believed that digital assets would sooner or later have a place in their portfolio.

Therefore, the company is aware that a limited but significant proportion of institutional investors are already investing in digital assets, that there are many others ready to do so, and that these investments have the potential to double in the coming years. It is therefore not surprising that the company has been interested in cryptocurrency for some time, nor has it launched a fund to invest in bitcoins.

In addition, the success of Grayscale’s bitcoin investment fund in the first half of 2020, which has bought more Bitcoin Loophole with its bitcoin investment fund than has been undermined since January, reveals that this is a fast-growing market and that those who want to exploit it must probably do so now.