On August 26, 2020, Peter Jubber, the chief strategist at Boston-based Fidelity Investments, officially filed paperwork for a new Bitcoin fund with the U.S. Securities and Exchange Commission (SEC).
Fidelity plans to incorporate a new Bitcoin index fund dubbed “Wise Origin” to serve institutional players through registered investment advisers, family offices, and other institutions.
The new fund has yet to raise any capital from investors according to filing documents provided to the SEC, and it is not clear what strategy the vehicle will deploy to manage funds of its future customers.
However, Bloomberg’s report confirmed that Fidelity Digital Assets would provide custody services for the fund, and the minimum amount required to join the pooled investment fund is $100,000.
The Wise Origin Bitcoin Index Fund will pave the way for institutions and accredited investors to get involved with cryptocurrencies as interest in the sector grows.
In a survey conducted by Fidelity from November 2019 to March 2020, the investment giant found that European and U.S. investors believe that digital assets have a place in their investment portfolio.
Indeed, 36% of respondents were already invested in digital assets, while 60% showed interest in putting substantial funds into the emerging asset class.
Fidelity Investments Warms Up to BTC
Fidelity Investments, which currently manages over $8.3 trillion in customer funds, isn’t new to the crypto game. The firm first embraced BTC in 2017 when its CEO Abigail Johnson unveiled a new BTC and ETH mining operation.
In October 2018, the mutual fund launched Fidelity Digital Assets to act as an investment vehicle for big institutional players interested in digital assets.
Fidelity’s crypto subsidiary was designed to hold and manage crypto for wealthy individuals who wish to profit from the market.
At the time, CEO Johnson noted:
“There are people out there with significant amounts of wealth in cryptocurrencies, probably bitcoin, and they’re looking for somebody to hold those coins for them because, in the event of their passing, you’ve got to have a plan to be able to get those coins to somebody else.”
Wise Origin’s launch now suggests that sophisticated Wall Street investors are increasingly warming up to BTC.
Institutional Investment in Bitcoin Could See Massive Growth
Fidelity’s new Bitcoin Index Fund comes at a time when the Boston-based investment giant is hugely bullish on crypto.
The firm’s chief strategist was earlier quoted saying that there was a “massive opportunity” in the blockchain industry, affirming Fidelity’s interest in the sector.
Furthermore, Fidelity Digital Assets recently released a report indicating that BTC’s institutional investment could see immense growth this year. The report featured a stock-to-flow valuation model that projects BTC prices hitting $1 million.
This valuation prompted Fidelity to look into innovative ways to attract investors to Bitcoin funds and integrate the digital asset into their traditional investment portfolios.
