Fidelity’s Bitcoin ETF draws $40M in largest single investment from advisers

Two American financial advisors have made a large investment of $40 million, setting a new record as the biggest single contribution to Fidelity’s Bitcoin ETF offered by Fidelity.

Based on information from Bloomberg analyst Eric Balchunas, financial advisory firms Legacy Wealth Management and United Capital Management of Kansas have recently purchased $20 million worth of shares in the Fidelity Wise Origin Bitcoin Fund (FBTC). These firms have now become significant investors in the fund.

At the end of the first quarter in 2024, Legacy Wealth Management was responsible for managing over $359 million worth of assets, according to their 13F form filing with the SEC. Similarly, United Capital Management of Kansas reported managing more than $436 million in assets during the same period, as indicated in their 13F submission.

Fidelity’s Bitcoin ETF draws $40M in largest single investment from advisers

Based on information from financial research company Fintel, approximately 6% and 5% of the investment portfolios consist of Bitcoin (BTC), according to their data.

According to Bloomberg’s Balchunas, these statistics suggest that more conventional investors are starting to embrace this trend. He made this observation regarding United Capital Management of Kansas, describing it as a classic example of traditional investor behavior.

“It could be an inspiring spectacle for those advocating for long-term acceptance, but a dreadful scenario for the RIA Skeptics branch of the Underwhelmers Club,” he remarked instead.

Some people are raising worries lately about the lack of widespread involvement in Bitcoin ETFs following the recent revelations.

Jim Bianco, the founder of macro research firm Bianco Research, expressed disappointment over the first-quarter allocation data. He further mentioned that the profits earned through ETF investment in Bitcoin were decreasing rapidly when compared to the current market price.

At present, Fidelity’s Bitcoin fund is the second largest Bitcoin ETF in terms of managed assets, boasting over $10 billion. This trails slightly behind BlackRock’s iShares Bitcoin Trust (IBIT), which currently manages over $18 billion.

Although there’s been an increase in interest from novice investors and traditional finance, the demand for Bitcoin ETFs has recently decreased. According to CryptoQuant CEO Ki Young Ju, reported on Cointelegraph, the interest in Bitcoin funds reached a high point in March but has since then remained stagnant.

On April 15th, Bitcoin ETFs reported a total withdrawal of $36.7 million. Among these, only Grayscale and BlackRock noted inflows worth of on the 12th and 15th of the same month. The remaining funds all faced outflows during this period.

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2024-04-23 21:10