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Two US Fund Managers Allocate 5% and 6% of Portfolio to BTC

Two U.S.-based advisor firms have joined the Bitcoin bandwagon, splashing over $40 million on Fidelity’s FBTC.

Bitcoin BTC

Bitcoin exchange-traded funds (ETFs) have captured the attention of more mainstream audiences. Current data revealed by the Bloomberg ETF analyst Eric Balchunas on X confirms that two independent fund management companies have plunged millions into one of the ETF products. The information comes when bitcoin’s (BTC) value jumped above $66,000.

Fund Managers Embrace Bitcoin ETFs

A list of entities holding Fidelity’s FBTC ETF product shows that Legacy Wealth Asset Management and United Capital Management of Kansas invested over $20.5 million and $20.3 million, respectively. The metric adds that the invested funds represent 6% and 5% of the companies’ total portfolio.

The amount invested by both firms is substantially higher than those of other FBTC holders. It also outweighs the $17 million another advisory firm invested in BlackRock’s IBIT.

Balchunas explained that this move from the advisory firms will be regarded as a “wonderful sight” for individuals interested in Bitcoin ETF adoption. On the other hand, it would be an “absolute nightmare” for sceptics.

The Bloomberg analyst expressed optimism that other U.S. advisory platforms will take a similar step by filing a Form 13-F with the Securities and Exchange Commission (SEC). The document is one that investment firms holding over $100 million must submit quarterly to disclose investment holdings. This implies that the reporting will be done four times yearly.

Balchunas speculated that over 500 to 1000 such forms will likely be filed with the SEC over time.

Bitcoin ETFs Contribute to BTC Surge

Since the approval of joint applications for the Bitcoin ETFs in the U.S. in January 2024, several financial firms and investors have embraced the asset.

A few weeks after the launch, investment companies offering these ETF products soaked up billions in assets under management. This helped BTC soar to an all-time high of around $73,700.

Although the Bitcoin ETF frenzy appeared to cool off for some time, ETF experts calmed everyone’s concerns by explaining what goes on behind the scenes with the financial products.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.