Nearly two years after its launch, Fidelity Investments’ bitcoin index fund has seen a decline in inbound investment growth year-over-year, according to regulatory filings.
The Wise Origin Bitcoin Index Fund went public in August 2020, giving Boston-based Fidelity the ability to offer its clients exposure to bitcoin. Nearly nine months later, the fund had raised $102 million, according to SEC filings.
According to its latest Securities Exchanges Commission filing, made on Monday, the fund has now raised a total of $126.5 million as of May 23, signaling slower overall growth from the previous reporting period. The slowdown comes amid the fund’s size increasing somewhat in its second year, with the number of investors rising from 83 to 689, according to the latest report.
Fidelity, which manages approximately $4.2 trillion in assets, recently announced that it will allow its customers to allocate part of their retirement savings to bitcoin. The asset manager revealed in April that it plans to allow investors to add a bitcoin account to their 401(k) plans, once their employers agree. This announcement sparked strong interest, with some strongly welcoming it, while others, notably the Department of Labor, felt that the excessively high volatility of cryptoassets does not suit the very nature of retirement savings.
The divergence of opinions also had a strong echo in the Senate. For example, Senators Elizabeth Warren (Massachusetts) and Tina Smith (Minnesota) sent a letter to Fidelity CEO Abigail Johnson expressing their concerns about Fidelity’s decision to add BTC to its 401(k) investment plan. (k). Indeed, for the senators, the proposal was not relevant because few retirees made the request to move part of their savings into bitcoin: “ Despite a lack of demand for this option – only 2% of employers expressed interest in adding cryptocurrencies to their 401(k) menu – Fidelity decided to forge ahead with full speed support bitcoin investments. »
Other senators, however, will take the opposite view. Byron Donalds, a Republican from Florida, introduced the Financial Freedom Bill in the US House of Representatives to prevent the US Department of Labor from being able to define the types of investments that Americans can incorporate into their Americans self-directed 401(k) retirement plans. Byron Donalds is very supported in his approach by Tommy Tuberville who will write in a CNBC editorial: “ Whether or not you believe in the long-term economic prospects of cryptocurrencies, the choice of what you invest your retirement savings in should be yours – not the government’s.. »
Despite the reservations and distrust shown by regulators and public authorities, it is difficult to deny that there is an increasingly widespread investor interest in the cryptocurrency ecosystem. These numerous fundraisers benefiting companies operating in cryptocurrencies demonstrate this well.
Source : theblockcrypto.com
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.