Fidelity’s Bitcoin exchange-traded fund (ETF) has received $40 million in a single investment from two financial advisers, making it the largest investment in a Bitcoin fund.
Financial advisers United Capital Management of Kansas and Legacy Wealth Management have recently invested $20 million in Fidelity Wise Origin Bitcoin Fund (FBTC) shares, becoming the fund’s top shareholders, per Bloomberg analyst Eric Balchunas.
United Capital Management of Kansas manages over $436 million in assets under management, whereas Legacy Wealth Management oversees over $359 million.
Recent 13F form filings with the U.S. Securities and Exchange Commission (SEC) for the first quarter of 2024 contain the figures submitted by asset managers.
Fintel, an investment research firm, reports that Bitcoin comprises 6% and 5% of the funds’ portfolios.
According to Bloomberg’s Balchunas, the numbers suggest an increasing inclination towards adoption by conventional investors. “This is as Boomer as it gets,” he said of United Capital Management of Kansas on X.
He further stated, “This would be an exceptional occurrence for individuals anticipating long-term adoption, but a complete nightmare for the RIA Skeptics Branch of the Underwhelmers Club.”
However, the limited mainstream participation in Bitcoin ETFs has prompted some to express concern in light of the recent disclosures.
As the founder of the macro research firm Bianco Research, Jim Bianco termed the allocation data for the first quarter a “disappointment.” “Unrealized gains are rapidly diminishing,” he continued, comparing the gains of ETF investors to the current price of Bitcoin.
As of the time of writing, Fidelity’s BTC fund has accumulated assets exceeding $10 billion, placing it as the second-largest Bitcoin ETF in this regard. BlackRock’s iShares Bitcoin Trust (IBIT) maintains over $18 billion.
Although Bitcoin ETFs are gaining traction among traditional investors and attracting newcomers, their demand is decelerating. Since its zenith in March, CryptoQuant CEO Ki Young Ju stated on X that demand for Bitcoin funds has remained stagnant.
Bitcoin ETFs encountered net outflows amounting to $36.7 million on April 15. On April 12 and 15, only Grayscale and BlackRock reported positive inflows, per Farside Investors; all other funds experienced outflows.
