Fidelity, a major financial services firm, says pension funds are starting to explore investing in Bitcoin, particularly after the approval of spot Bitcoin exchangeThe funds were traded earlier in the year.
Fidelity Investments, a Wall Street titan, has announced that some pension funds will begin to look at blockchain technology. #Bitcoin Cryptography
Slowly, then suddenly🚀 pic.twitter.com/8vBz4Bf02t
— Bitcoin Magazine (@BitcoinMagazine) May 3, 2024
The Fidelity Group has long been a proponent of Bitcoin, having launched its Digital Assets Branch in 2018. Bitcoin ETF Market earlier in the year. ETFs offered by the company attracted significant amounts of capital when compared with competitors.
Fidelity’s Vice President of Digital Assets Manuel Nordeste said the company has been in contact with pension funds, other institutions and major investors to discuss Bitcoin allocation.
Nordeste said the following at a recent public event: “Now, we’re starting to have conversations with the larger, real money institutional investor types, and we’re getting some of those clients, as well as corporates and so on.”
BlackRock had also commented on his comments. yesterday We are having educated conversations with pension fund about Bitcoin ETFs. Recently filed 13F documents show major pension consultants Have already purchased Bitcoin spot ETFs.
These mounting facts indicate that serious consideration is being given to allowing pensions to invest in Bitcoin-related vehicles such as ETFs.
U.S. pension fund portfolio allocations, even if they are small, could generate significant flows.
Most pensions have remained cautious, compared with family offices or hedge funds who already own Bitcoin. Their conservative mandates as well as their emphasis on risk management are the main reasons for this.
Pensions following the early adopters would be a major shift in acceptance.
Bitcoin ETFs, since their introduction in January this year have been in high demand. This week’s outflows were record-breaking, but the trajectory for long term is still highly promising.
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Source: bitcoinmagazine.com