In the latest report, Fidelity Digital Asset speculated that nation-states and governments might be the “next significant investor” to add Bitcoin to their portfolio.
The statement aligns with the trend, as many countries are striving to create a Strategic Bitcoin Reserve or provide exposure to the crypto space. The trend began after Donald Trump’s remarkable victory in the presidential election race, boosting investors’ confidence as he promised to formulate crypto-friendly policies during his campaign.
“We’re gonna do something great with crypto because we don’t want China, or anybody else … but others are embracing it, and we want to be ahead,” Trump said at the New York Stock Exchange. At present, the largest Bitcoin holdings governments are the U.S., China, United Kingdom, Ukraine, Bhutan, and El Salvador.
Fidelity Cites Spot Bitcoin ETPs Growth
The report highlighted the growth of Spot Bitcoin ETPs (exchange-traded products) in 2024 which gained the attention of institutional and retail investors.
Spot Bitcoin ETPs have accumulated a standout $54 billion of inflows. BlackRock’s iShares Bitcoin Trust ETF (IBIT) has topped the leaderboard, attracting $33 billion of inflows. IBIT also generated $50 billion in assets under management in 2024, making it the most successful ETP launch of all time.
“This regulated, familiar, and accessible vehicle has made allocating to Bitcoin more streamlined than ever before, leading to several pensions and at least one endowment making allocations to Bitcoin through these products,” Fidelity stated in a report.
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