A couple weeks ago, I wrote a story about one of the most interesting bitcoin-related investments of the year.
A company called Blockchain, based in the UK, was selling shares in a bitcoin-focused bitcoin hedge fund.
The fund is called Bancor, and it’s led by Fred Wilson, the CEO of Bancorp, a global bank.
The funds have been wildly successful, earning investors around $4 billion in revenue and making them the world’s biggest investors in the cryptocurrency market.
But as it turns out, Wilson’s hedge fund, which was founded in 2010 and is now worth $2.2 billion, is also one of Fidelity’s biggest bitcoin investments.
According to Recoding, Bancors shares were traded for around $1 each in mid-July.
In early August, the company announced that it had bought more than a million shares of its own stock.
In addition to buying more than half of the company’s stock, Fidelity is also now buying more shares of BannCo, a bitcoin ETF that’s based in Singapore.
The shares were trading for around the same price, and Fidelity bought a $250 million piece of the ETF, which means it has now sold nearly half of its stake in Bancos stock.
Fidelity has also acquired shares of a bitcoin fund that’s also based in Hong Kong.
It is now one of a handful of large financial institutions to own shares of this fund, although the firm says that it has not yet determined its investment strategy for the funds.
What’s more, FSU also acquired another bitcoin fund in September, with another price point of $1 per share.
I have no idea if Fidelity intends to sell the shares it bought from Blockchain.
What I do know is that the buyout is a big step forward for the Fidelity bitcoin portfolio.
For the past few years, FUcoin, a hedge fund that invests in bitcoin derivatives, has been one of its most valuable investments.
As of the end of 2018, it was valued at $8 billion.
That’s still less than half the size of FUco, but it’s a lot more than the $2 billion that FUcoins hedge fund invested in its own funds in 2015.
This means that FUs Bitcoin Investment Fund is worth far more than FUCoin.
FUCo also is one of several bitcoin funds that’s currently valued at around $3 billion, according the research firm Bitcoin Investment Trust.
That includes one of Bitcoin Investment Corp.’s biggest hedge funds, the Chicago-based SecondMarket Capital Management, which has a $2 trillion dollar valuation.
The Bitcoin Investment ETF, by contrast, is valued at just $1 billion.
And so FUccoin and FUCOins bitcoin ETFs are the first of what Fidelity hopes will be many bitcoin-centric bitcoin ETF holdings over the next several years.
What this means is that Fidelity will no longer have to buy shares of bitcoin-based hedge funds every time it wants to sell a fund.
And it will be able to invest more in bitcoin-linked ETFs, since the hedge funds will no long be the only ones with bitcoin-specific investments.
In fact, FST’s portfolio will have a lot less bitcoin-associated assets than it did before.
For instance, FUSco has less than 2 percent of its assets tied to bitcoin, compared to the 2 percent that FUT is tied to.
And FUbcoin has only 0.5 percent, compared with the 2.5 to 3 percent that it was tied to before.
As a result, Fulfillment Partners, the investment arm of FST, is now valued at more than $8.4 billion.
It’s one of two bitcoin funds owned by FST that has a valuation above $1 trillion, and the other is the New York-based Fund for International Investment, which holds nearly $2-billion in assets.
The New York fund also has about $5-billion invested in other bitcoin ETF funds, including the one that’s backed by Freds bitcoin-backed hedge fund Bancora.
And that fund has already bought up more than 1,000 bitcoin-aligned ETFs.
As the next wave of bitcoin ETF investments hits the market, the big questions for Fidelity are whether it can afford to hold onto the investments that it made last year and whether it will continue to invest in the sector that will ultimately be the most profitable.