Fidelity’s Bitcoin ETF Hits Jackpot with $40M from Advisers in One Go!

In a significant move signaling growing confidence among traditional financial advisers in cryptocurrency, the Fidelity Wise Origin Bitcoin Fund (FBTC) has recently garnered $40 million from two major U.S. financial advisory firms.

Legacy Wealth Management and United Capital Management of Kansas, notable for their substantial assets under management, have each invested $20 million into FBTC, establishing themselves as leading stakeholders in the fund.

We have new high water mark for investment into one of the bitcoin ETFs: two dif advisors each put in $20m to $FBTC, one is from Kansas and the other Minnesota. The % of portfolio is also pretty high at 6% and 5% respectively. This edges out the $17m an advisor put in $IBIT pic.twitter.com/A5y58NuFoe

— Eric Balchunas (@EricBalchunas) April 23, 2024

This substantial investment marks a record in the Bitcoin ETF space, representing the largest single transaction to date.

According to Bloomberg’s analyst Eric Balchunas, this is indicative of a broader trend where conventional investment entities are increasingly engaging with digital assets.

According to SoSoValue, the total net inflow of Bitcoin spot ETF yesterday, April 22, was $62.0899 million. Grayscale GBTC had a single-day net outflow of $34.993 million. The single-day net inflow of Fidelity ETF FBTC was US$34.8334 million, and the historical cumulative net… pic.twitter.com/yt2vTMA5bm

— Wu Blockchain (@WuBlockchain) April 23, 2024

The investment comprises 6% and 5% of Legacy Wealth and United Capital’s portfolios, respectively, as reported by the investment research firm Fintel.

The financials, sourced from recent 13F form filings to the U.S. Securities and Exchange Commission for the first quarter of 2024, reveal the significant engagement of these firms with the Bitcoin market.

Legacy Wealth Management manages assets worth over $359 million, while United Capital oversees more than $436 million.

Despite the enthusiasm from these financial behemoths, the overall market sentiment towards Bitcoin ETFs has been tepid, with concerns about limited mainstream acceptance persisting.

ETF Update: The @Fidelity Bitcoin ETF $FBTC institutional adoption is soaring as it outpaced @BlackRock $IBIT in three consecutive sessions. 👀

Yesterday it saw $40m new inflow.

— MartyParty (@martypartymusic) April 23, 2024

Jim Bianco of Bianco Research points out that the expectations from the first-quarter allocation data were not met, highlighting a rapid decline in unrealized gains amid fluctuating Bitcoin prices.

Nevertheless, FBTC stands as the second-largest Bitcoin ETF, boasting over $10 billion in assets under management, trailing only behind BlackRock’s iShares Bitcoin Trust, which holds more than $18 billion.

Top 10 Bitcoin addresses👇

Worth noting that if the Bitcoin ETFs held all their Bitcoin in 1 address, BlackRock's $IBIT would be #1 on this list w/ 274,460 #BTC and Fidelity's $FBTC would be #3 w/ 153,908 $BTC pic.twitter.com/tVOiVVVmxn

— HODL15Capital 🇺🇸 (@HODL15Capital) April 24, 2024

Despite a slowdown in overall demand since a peak in March, and recent net outflows in the sector, there remains a cautious optimism about the long-term potential for Bitcoin and its acceptance among traditional investment circles.

This investment could serve as a beacon for potential long-term adoption, even as it stirs mixed feelings among industry watchers.

CryptoQuant’s CEO Ki Young Ju noted a plateau in demand for Bitcoin funds, marking a challenging phase for the growth of Bitcoin ETFs.

#Bitcoin ETF demand has stagnated for 4 weeks, yet on-chain accumulation remains very active, even when excluding ETF settlement transactions. pic.twitter.com/PqMTzJrAym

— Ki Young Ju (@ki_young_ju) April 16, 2024

Nevertheless, entities like Grayscale and BlackRock have shown resilience with positive inflows, underscoring a complex but evolving landscape in cryptocurrency investments.

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