Fidelity investment fund to invest in ‘digital gold’
The Fidelity Investments Investment Fund (FITF) has been awarded an undisclosed grant to start investing in digital gold.
The fund, which invests in a variety of assets including bitcoin and other cryptocurrencies, will start investing this week in a bitcoin-focused investment account.
The fund was announced on Thursday by Fidelity CEO David Weil and CEO Eric Schumacher.
In a statement, Weil said that the FITF has long valued cryptocurrencies as a store of value, as well as an investment tool that can provide financial independence.
He said that FITB’s investment fund will invest in a cryptocurrency-focused fund.
“Fidelity is a pioneer in digital asset investing, and we are excited to partner with Fidelity to explore innovative ways to invest with digital gold,” Weil added.
“Bitcoin is a global digital asset that is both stable and scalable, with no centralized issuer or custodian.
The value of digital gold is that it can be used by investors to securely store value, and that it is a highly liquid and attractive investment opportunity.”
Fidelity’s FITT bitcoin investment fund invests in bitcoin and is backed by US-based hedge fund BlackRock.
According to the company, FITTF invests in “investments in companies that are using digital currencies as a way to transact without needing to be physically present in a physical location.”
The fund is also the first to invest directly in bitcoin.
Fidelity previously invested in an alternative digital currency called ether.
In June, the firm said that it would invest in an ether-based fund, but that the project has been delayed because of a regulatory environment that makes it difficult to legally invest in cryptocurrencies.
The FITBF’s decision to invest comes as the bitcoin market continues to boom with new users adding to the market, increasing demand for the digital currency.
Fidelity is one of the largest institutional investors in the crypto-trading space.
The investment comes as Fidelity has been in the news over the past few months over the issue of a $30 million US tax penalty levied against it over alleged tax evasion.
The fund was among the largest in the world to get a penalty, but the company has defended its investments, saying that it has never used the funds to evade tax.
As of September 1, Fidelity had $1.5 billion in assets under management.