The Latest News on Fidelity’s Bitcoin ETF
Fidelity, an American company that offers ETFs on Bitcoin, has recently made two positive announcements related to Bitcoin. These developments may have contributed to the recent price recovery in the market.
One piece of news is that Fidelity’s Wise Origin Bitcoin Fund ETF (FBTC) has quickly accumulated over 63,000 BTC since its launch on the New York Stock Exchange. This makes it the third-largest ETF in terms of BTC holdings, behind BlackRock and Grayscale.
In addition, two other new Bitcoin ETFs, ARKB by Ark Invest and BITB by Bitwise, have absorbed another 31,000 BTC. Combined with FBTC and BlackRock’s IBIT, these new ETFs have purchased more BTC than Grayscale has sold.
Fidelity’s Optimistic Forecasts
Fidelity Digital Asset (FDA), Fidelity’s division dealing with digital assets, expressed a positive view on BTC across different time horizons. FDA believes that Bitcoin will perform well in the short term (less than 1 year), medium term (5 years), and long term.
It’s worth noting that traditional markets have different timing compared to crypto markets. While Fidelity considers months as the short term and years as the medium term, crypto market operators have faster timelines. However, many analysts are optimistic about Bitcoin in the medium-short term leading up to the April halving.
Adding Bitcoin to Traditional ETFs
Fidelity Canada has allocated 1% of its All-in-One Conservative ETF to Bitcoin. This low-cost solution is based on a multi-asset strategy and aims to provide consistent portfolio rebalancing. Although this allocation was made in Fidelity’s Canadian branch, it indicates the company’s confidence in Bitcoin.
Technically, the Canadian fund invested in Fidelity Advantage Bitcoin ETF (FBTC) traded on the Toronto Stock Exchange, rather than FBTC shares traded on US exchanges. This move could be a signal of what may happen in the US market, similar to the success of Bitcoin spot ETFs.
Shortly after the news of Fidelity Canada’s BTC allocation was released, the price of Bitcoin started to rise, reaching $44,000. This suggests that market participants reacted positively to Fidelity’s decision.
Hot Take: Fidelity’s Positive Impact on Bitcoin
Fidelity’s recent announcements regarding Bitcoin have had a positive impact on the cryptocurrency. The launch of their Wise Origin Bitcoin Fund ETF and their optimistic forecasts for BTC have generated optimism and contributed to the recent price recovery.
In addition, Fidelity Canada’s decision to allocate 1% of its All-in-One Conservative ETF to Bitcoin demonstrates the company’s confidence in the asset. Although this allocation was made in the Canadian market, it could potentially set a precedent for similar moves in the larger US market.
Overall, Fidelity’s involvement in Bitcoin through ETFs and strategic investments is a significant development for both institutional and retail investors. It further validates Bitcoin as a legitimate investment asset and may attract more mainstream adoption in the future.
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