Fidelity Fund bought shares in a Crypto SPAC – Trustnodes

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Fidelity Concord Street Trust, which invests in sort of everything with $11 billion in assets under management, has invested in a number of crypto-related entities, but not bitcoin or eth directly.

The fund has $4.6 million from Coinbase, $1 million from MicroStrategy, half a million from Riot and Bitcoin miner Marathon, and a number of special-purpose acquisition companies (SPAC).

This includes Blockchain Coinvestors Acquisition Corp and Blockchain Moon Acquisition Corp. at $90,000 and $62,000 respectively.

The former is still looking for a blockchain company to go public, while the latter has signed an agreement to acquire all Web3 assets from DLTx ASA, a Norwegian company. DLTx says:

“We provide hashing power to the Bitcoin protocol (telling us BTC), we provide data storage to the Filecoin protocol (telling us FIL), we provide blockchain nodes/servers to the Pocket network (telling us POKT), and we provide hotspots/coverage to the Helium protocol (which brings us HNT). Protocols are great customers who always pay on time, act predictably, and are completely transparent. »

Interestingly, the long list of entities bought by this Fidelity fund does not even include a company that has eth or bitcoin in its name, and only one with crypto.

They own Crypto 1 Acquisition Corp., a SPAC launched in late 2021, for about $26,000.

The company raised $230 million in an initial public offering (IPO) and intends to take a crypto exchange public.

The company has not commented on how it has progressed towards its acquisition so far, but its debut coincided with the top of the market which turned bearish soon after.

This would be one of the best times you can think of for an acquisition due to lower valuations, but the focus on the crypto exchange doesn’t leave many options.

Kraken is a contender to go public, as well as EU-based Bitstamp, but neither might want to go public during the bear market as demand might be low.

There aren’t many other Western exchanges that one can point to, but each non-English speaking country tends to have its own exchange.

BitPanda, for example, is big in Germany with 3.5 million customers. They have also diversified into equities, so they are the lesser known Robinhood or Revolut, and quite uniquely have crypto indices like the BCI DeFi Leaders.

Turkey has its btcTurk, which can be interesting IPOs possibly in addition to other local exchanges.

The stock market for publicly traded crypto will therefore likely rise, and with it also the occasional indirect crypto investment by funds.

There are, however, still only a few funds that have such exposure, but this Fidelity investment stands out as a sign of change.

Cryptos are now beginning to form part of diversified equity portfolios, especially in funds that have broad market exposure, allowing investors to casually and often unknowingly access the crypto market.

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