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Fidelity Investments, one of the largest investment companies in the world in custody and execution of assets, has revived its crypto venture fund. As the company is responsible for holding and managing over $2.5 trillion USD in funds, this is huge news.
While the company was able to raise some eyebrows when it announced that it would launch Fidelity Digital Assets, a custody and execution platform aimed at digital assets, this new fund is almost as surprising as that.
Originally, the company was able to launch what was known as an “exploratory fund” for crypto and digital assets. The fund was originally created in 2017 and, while it served its purpose at the time, some key people at the company left and the fund died.
Now, The Block Crypto has talked to inside sources and they affirm that the once dead VC fund for cryptos is now back up again with a new fund manager. While the source is unknown, the original media outlet that reported on the story affirmed that this is happening.
The Old Crypto Fund
The original fund, as we’ve said, was started last year. At the time, it was managed by Nic Carter and Matt Walsh. They used the capital from Fidelity to invest in crypto assets that looked profitable at the time.
Why was the fund shut down? Because both Carter and Walsh left the company to start a new one called Castle Island Ventures. This company is a VC fund focused on Bitcoin.
While this meant that the fund was basically dead at the time as the two experts who spearheaded the idea left the company, it looks like now Fidelity is interested in the market again. The new fund will be overseen by Sachin Patodia, an executive that already worked in the company for 11 years. The new version of the fund will be allegedly bigger and considerably more ambitious than its older version.
Fidelity, Crypto and An Ambitious Plan
It’s clear that Fidelity is eyeing cryptos now. The efforts of the company to understand this market began way before the last bull run, in 2014. The firm has also examined how mining worked in 2015 and made an important partnership with Coinbase last year, in which it allowed for its clients to view their crypto holding on the crypto exchange.
Now, it is clear that the company has deemed cryptos interesting enough to invest more aggressively in them. While the plan is not yet clear, it is certainly ambitious, that much you can be sure of.
With the bear market now in place, the company will have its chance to buy the assets at a low price and less them high later when the inevitable bull run happens once more.
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