Fidelity, a major financial services company, says pension funds are beginning to explore the possibility of investing in bitcoin, particularly after the approval of bitcoin exchange-traded funds earlier this year.
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BREAKING: Wall Street giant Fidelity says pension funds are starting to explore twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin and crypto
Little by little and then suddenly pic.twitter.com/8vBz4Bf02t
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1786350554207203375?ref_src=twsrc%5Etfw”>May 3, 2024
Fidelity has been bullish on bitcoin for years, launching its Digital Assets arm in 2018 and bringing a successful bitcoin ETF to market earlier this year. The company's ETF attracted significant capital compared to its competitors.
Now, Fidelity VP of Digital Assets Manuel Nordeste says the company is collaborating with major pension funds and other institutional investors to make allocations to bitcoin.
At a recent event, Nordeste said: “We're now starting to have conversations with the larger, real-money types of institutional investors, and we're getting some of those clients, as well as corporates, etc.”
His comments come after BlackRock also mentioned yesterday having had educational conversations with pension funds about bitcoin ETFs. Recent 13F filings show that major pension consultants have already purchased spot bitcoin ETFs.
This growing evidence indicates that serious diligence is being undertaken to allow pension investments in bitcoin vehicles such as ETFs.
With more than $4 trillion in capital, U.S. pension funds committing even small portfolio allocations could generate significant capital inflows.
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While pensions remain cautious compared to family offices and hedge funds, which have already bought exposure to bitcoin, their conservative mandates and focus on risk management have kept most pensions on the sidelines until now. .
If pensions follow the lead of early adopters, it would represent a seismic shift in mainstream acceptance.
So far, bitcoin ETFs have seen huge demand since their launch this year. While record outflows were seen this week, the long-term trajectory still looks very favorable.
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