More traditional finance firms in the United States are jumping on the crypto bandwagon and giving their clients access to the burgeoning sector. This is seen in the increasing portfolio allocation given to crypto investment products.
A tweet by Bloomberg exchange-traded fund (ETF) analyst Eric Balchunas has revealed that two U.S. investment advisors, Legacy Wealth Asset Management and United Capital Management, from Minnesota and Kansas, respectively, have allocated 6% and 5% of their portfolios to the Fidelity Wise Origin Bitcoin Fund (FBTC).
These asset management firms’ portfolio allocations saw them invest more than $20 million each into FBTC, surpassing the $17 million a rival injected into BlackRock’s ETF, IBIT.
Balchunas tagged their allocations a “new high water mark” for investment into Bitcoin ETFs, adding that such development is a nightmare for “the RIA Skeptics Branch of the Underwhelmers Club.” On the other hand, the “pretty high” allocations are a wonderful sight for market participants hoping to see long-term adoption.
“This is as Boomer as it gets. We still have 5-6 weeks of more 13F reporting like this too. We could see 500-1000 firms like this reporting holdings once dust settles. And that’s just one 13F season. There are 4 in a year,” the Bloomberg analyst added.
Interestingly, a screenshot of United Capital Management’s website posted by Balchunas showed “WE’RE COMING FOR YOUR COINS DEGENS” boldly written on the company’s homepage. However, the company had updated its website and taken the statement down by the time of writing.
The $40.8 million investment in FBTC has boosted spot Bitcoin ETF inflows, offsetting last week’s outflows. Data from CoinGlass shows the funds experienced an outflow streak for four consecutive trading days last week, recording inflows only on Friday.
On Monday, the spot Bitcoin ETF market recorded inflows of $62.2 million, with FBTC seeing the highest of more than $34.8 million. It is worth noting that IBIT is close to marking its 70th consecutive day of inflows since launch and becoming one of the top ten ETFs with the longest daily streaks of inflows.
Meanwhile, a student-run investment fund has allocated an even higher portion of its portfolio to BTC. CryptoPotato reported last month that the Stanford Blyth Fund apportioned 7% of its portfolio to Bitcoin following a BTC purchase.
The post These US Asset Managers Just Bought Bitcoin Through Fidelity’s ETF appeared first on CryptoPotato.
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