Fidelity, one of the world’s largest asset managers, has found a million-dollar investment in a newly announced altcoin fund. This news means that money will flow directly to the respective altcoin through the fund.
$5 million will flow from Fidelity’s fund to this altcoin project
Chris Tyrer, Head of Fidelity Digital Asset Management, shared that he has raised $5,018,184 from just one client for the Ethereum Index Fund. It is not clear who the customer is as it is a relatively small amount. However, as you follow on Kriptokoin.com, the fund has just started.
Fidelity recently raised $60 million for a Bitcoin fund. However, a spokesperson says:
Fidelity recognizes the need for a variety of products and solutions that help clients take risks in line with their different financial goals and risk tolerances. We continued to see client demand to invest in cryptocurrencies beyond Bitcoin.
Ethereum, along with Bitcoin, has gained some stability in price recently. Thus, it increased the likelihood of investors to consider the cryptocurrency market once again. NYDIG, for example, raised $700 million last week for its Institutional Bitcoin Fund, the largest sum in two years. It is not yet clear whether this shows a trend. But institutional investors are staying a little less quiet after months of awol.
Bitcoin (BTC) market may soon see an influx of institutional investors
Elsewhere, according to a tweet from CryptoQuant CEO Ki Young Ju, the price of Bitcoin is close to the estimated entry price of institutional investors using Coinbase’s services. The analysis is based on the on-chain volume-weighted average price (OWAP) of BTC outlets on Coinbase. This technical indicator is used to weigh the price against the volume traded to determine whether a market trend is overbought. It also helps traders time their entry and exit to the market.
A consequence of institutions entering the market at the current price may result in a price increase. This is due to the belief that institutional investors, usually whale-level investors, are making bullish moves in the crypto market.
$BTC price now is close to the estimated entry price of institutional investors who have been using Coinbase services like prime brokerage, custody, etc.
If you still believe institutions drive this market, this bull opium could work for you. pic.twitter.com/goQTSnuCN7
— Ki Young Ju (@ki_young_ju) October 5, 2022
Institutions are still held back by the lack of regulatory clarity. The observation comes at a time when several institutions are showing a growing appetite for crypto adoption. Bloomberg reports that Nasdaq, the second largest exchange by market capitalization, is the latest institution to voice its plans to offer crypto services.
While Nasdaq has detailed designs for crypto, including expanding to offering custody services to its clients, the company tells Bloomberg it expects more regulatory clarity for the industry before implementing its plans. The story is similar for other institutions. However, regulatory clarity is soon on the market, especially in the US. The Financial Times said the Biden administration is urging lawmakers to step up efforts to regulate crypto.
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