Multinational investment firm Fidelity has now planned to incorporate a small amount of Bitcoin exposure to its two ‘All-in-One ETFs’. The two funds are ‘All-in-One Growth ETF’ and ‘All-in-One Balanced ETF’ managed by Fidelity Investments Canada ULC, the Canadian asset management division of Fidelity.
The targeted funds aim to offer investors exposure to different assets, regions, market capitalizations, and investment styles. While the instruments were previously rated as ‘low risk’, they are now weighed as ‘medium risk’ with the addition of Bitcoin exposure.
According to the press release, the company decided to add some amount of Fidelity Advantage Bitcoin ETF to seek “diversification benefits with the potential to improve risk-adjusted returns going forward.”
Fidelity VP of General Affairs Chris Pepper said in a statement that the All-in-One Growth ETF will invest 3% of the portfolio and the All-in-One Balanced ETF will invest 2% in Fidelity’s Bitcoin ETF. The investment giant launched the Fidelity Advantage Bitcoin ETF in December of last year, which invests in Bitcoin directly or through derivative instruments.
While Fidelity has launched multiple Bitcoin investment vehicles in Canada, it has so far failed to win approval in the US even after multiple events. The US SEC chairman Gary Gensler has been open about his distaste for spot Bitcoin ETFs, resulting in many applications being rejected or pending decisions.