The Fidelity Concord Street Trust, which kind of invests in everything with $11 billion in assets under management, has invested in a number of crypto related entities, though not in bitcoin or eth directly.
The fund has $4.6 million worth of Coinbase, $1 million worth of MicroStrategy, half a million worth of both the Riot and the Marathon bitcoin miner, and a number of Special Purpose Acquisition Companies (SPACs).
That includes the Blockchain Coinvestors Acquisition Corp and the Blockchain Moon Acquisition Corp. at $90,000 and $62,000 respectively.
The former is still looking for a blockchain company to take public, while the latter has signed an agreement to acquire all the Web3 assets of DLTx ASA, a Norwegian company. DLTx says:
“We provide hash power to the Bitcoin protocol (earning us BTC), we provide data storage to the Filecoin protocol (earning us FIL), we provide blockchain nodes / servers to the Pocket network (earning us POKT) & we provide hotspots / coverage to the Helium protocol (earning us HNT). Protocols are great customers that always pay on time, act predictably and are completely transparent.”
Interestingly the long list of entities bought by this Fidelity fund does not include even one company that has eth or bitcoin in their name, and only one with crypto.
They have about $26,000 worth of the Crypto 1 Acquisition Corp., a SPAC launched in late 2021.
The corp has raised $230 million in an Initial Public Offering (IPO) and intends to take a crypto exchange public.
The company did not comment on how they have progressed so far towards their acquisition but their debut coincided with the top of the market which soon after became bearish.
That would be one of the best time you’d think for an acquisition due to lower valuations, but a crypto exchange focus does not leave many options.
Kraken is a contender to go public, as well as the EU based Bitstamp, yet neither might want to do so during the bear market as there might be low demand.
There aren’t many other western exchanges one can point, but each non-English speaking country tends to have their own exchange.
BitPanda for example is big in Germany with 3.5 million customers. They have diversified to stocks as well, so they’re the lesser known Robinhood or Revolut, and somewhat uniquely have crypto indexes like the BCI DeFi Leaders.
Turkey has its btcTurk, both of which may be interesting IPOs eventually in addition to other local exchanges.
The publicly traded crypto stock market therefore will likely increase, and with it so too will the casual indirect crypto investment by funds.
There are still however only a few funds that have such exposure, but this Fidelity investment is notable as a sign that is changing.
Cryptos are now beginning to become part of diversified stock portfolios, especially in funds that have broad market exposure, allowing investors to casually and often unknowingly access the crypto market.