Fidelity Has Been Stashing Away Bitcoins Since 2014
Fidelity Investments has continued to show commitment to investing in Bitcoin and other digital currencies. The company has been an active investor since 2014.
Fidelity Digital Assets recently released a report stating that BTC is a superior form of money. The digital arm of Fidelity Investments echoed what many are already aware of in the coin market. What many may not know is that Fidelity has been accumulating bitcoins since 2014.
This means that Fidelity is one of the early institutional investors to commence holding bitcoins. The company’s journey into Bitcoin investment started in 2014 when it set up a research desk on Bitcoin.
According to Fidelity’s former head of corporate business development, Tom Jessop, the process also involved encouraging staff to mine bitcoins while the company also started buying digital assets from exchanges. This was before it conceptualized its digital assets arm, FDA.
A Move Towards Bitcoin ETF
Some observers are already envisaging the possibility that the company owns Bitcoins valued at billions of dollars. Fidelity announced in December that it will launch a bitcoin ETF. The investment giant has probably taken a cue from the benefits that has accrued to its portfolio via Bitcoin investments.
The company is among the big players that have shown absolute commitment to bitcoin investment, not just because it is stashing copious volumes of the digital asset, it is also heavily vested in the acquisition of viable operators in the crypto and blockchain space.
In August 2021, the company acquired a 7.4% stake in Marathon Digital Holdings, one of the most prominent bitcoin mining companies in the northern hemisphere. The $20 million investment is an increasing trend among some institutional investors. These are seeking more exposure to crypto assets for their investors and clients.
Key Players in Price Recovery
Big players such as Fidelity and other institutional investors are mostly instrumental in the pump in the price of Bitcoin and other cryptocurrencies, especially when their values drop to critical support. That this strategy has been repeated severally in the last few years is not in doubt.
Bitcoin has already gained $5,000 in the past 4 days. This is an indication that the whales have determined that the correction that saw the price of the currency drop to $33,500 is over.
Fidelity currently oversees assets in excess of $11 trillion with AUM valued at $4.2 billion. The Boston-based company recently reiterated its commitment to digital currency investments by giving a nod to crypto superiority.
Chris Lin, a portfolio manager with Fidelity said that crypto assets have the potential of profit because several institutional investors are putting funds in blockchain-based businesses. For a long-term view, he said,
“no one really knows how space will develop over time. ”