Fidelity has made a big announcement in the cryptocurrency market. The financial organization has stated that it is introducing a new Bitcoin fund with a minimum investment of $100,000. It has further stated that the new fund will be available soon, as it has made a filing to the body in charge, the US Securities and Exchange Commission. According to the reports, Fidelity Consulting’s head, Peter Jubber, will manage the new fund.
About The Bitcoin-Only Fund
Fidelity has named this new fund the Wise Origin Bitcoin Index Fund 1, LP. It is also important to note that the fund will be a passively managed Bitcoin-only fund. Fidelity has even created a new entity under which this fund has been placed. It is known as the Fidelity Digital Funds. This is a clear indication that the organization has plans for expanding the crypto-related investment funds even further. Therefore, the new Bitcoin fund will be under the strict custody of the newly created entity, Fidelity Digital Assets. As such, it will only be available to professional investors through investment advisers who are registered, family offices, as well as other qualified institutions.
Long-Term Commitment To The Industry
In an email sent to Bloomberg, Fidelity mentioned its long-term commitment to the blockchain market. It is committed to improving the future of blockchain technology across the market. In addition to that, Fidelity wants to make Bitcoin and other digitally native assets easily accessible to the investors. This explains why it had to introduce the Bitcoin fund at this time. For a long time, the current CEO of Fidelity, Abigail Johnson, has been a strong blockchain technology proponent. The CEO has also been supporting cryptocurrency in general as well as other virtual assets.
Changing The Major Market Structures
According to Abigail Johnson, the Internet is not just a more effective means of sending letters. She said these at the 2017 Consensus Conference. According to her, the Internet has created new industries. She added that the blockchain technology could help more than just settling securities. She believes that it would fundamentally improve the structure of the market. Apart from that, she suggests that the blockchain technology might also change the main architecture of the Internet.
Staying On The Same Path
Fidelity’s mission to change the blockchain market seems to have not changed. About a year ago, it introduced its new Fidelity Digital Assets department. This was created for a reason, and the reason is now evident. Fidelity has remained on that route and now launches a Bitcoin fund to its customers. Of late, banks have been trying to stay away from the crowded crypto space because most of them don’t have regulator clarity. With this new Bitcoin fund, BTC and blockchain enthusiasts will truly love Fidelity. Many established financial institutions have not fully moved to the crypto world. It is just a few of them such as Goldman Sachs and JP Morgan.