Fidelity’s Bitcoin ETF Draws $40M Investment, Setting New Record

The Fidelity Bitcoin exchange-traded fund (ETF) has achieved a significant milestone by attracting the largest single investment in a Bitcoin fund, totaling \(40 million from two prominent United States financial advisors. Legacy Wealth Management and United Capital Management of Kansas each invested \)20 million in shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), surpassing other shareholders. Legacy Wealth Management oversees assets exceeding \(359 million, while United Capital Management of Kansas manages over \)436 million.

According to Bloomberg analyst Eric Balchunas, this investment trend indicates a growing interest among traditional investors. He noted that these investments reflect a more conservative approach, particularly among older investors. However, despite these positive developments, concerns persist regarding the limited mainstream participation in Bitcoin ETFs.

Currently, Fidelity’s BTC fund ranks as the second-largest Bitcoin ETF based on assets under management, with a total of over \(10 billion, trailing behind BlackRock’s iShares Bitcoin Trust (IBIT) holding more than \)18 billion. Despite the increasing adoption and investments from traditional investors, Bitcoin ETFs are facing a slowdown in demand, as highlighted by CryptoQuant CEO Ki Young Ju, who observed a plateau in BTC fund requests since the peak in March.