Fidelity’s Bitcoin Binge: When 1% Isn’t Enough 🤑

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  • Fidelity, the financial giant with a taste for the digital, now holds a whopping 200K BTC, or 1% of all the BTC in existence. That’s right, they’re second only to BlackRock’s IBIT, which is like being the second-best at being a billionaire. 🤷‍♂️
  • But here’s the kicker: despite all the ETFs and strategies out there, the demand isn’t enough to make BTC prices soar. According to CryptoQuant, it’s like trying to inflate a balloon with a straw. 🎈

U.S. spot Bitcoin [BTC] ETFs are back, and they’re making a splash. On July 3rd, they saw a second daily inflow of $601.94 million. That’s more than the GDP of some small countries, but hey, who’s counting? 🤓

But guess what? Fidelity’s BTC ETF fund (FBTC) is outshining BlackRock’s IBIT. It’s like a high school popularity contest, but with billions of dollars on the line. 🏆

As of press time, FBTC led the pack with $237.13 million in inflows, just a tad more than IBIT’s $224.53 million. SoSo data showed this, and I’m just here to report the facts, folks. 📊

On July 2nd, FBTC was the star of the show, attracting $183 million of the overall $408 million inflows. It’s like being the only kid at the party who brought the good snacks. 🍭

Since Q2, the steady stream of inflows into FBTC has boosted its holdings to 199,493 BTC as of July 4th. That’s $22 billion worth of net assets, or 1.02% of the total BTC supply. It’s like owning a small country, but in digital form. 🌍

Q2 Institutional BTC Demand Surge

Fidelity’s BTC ETF growth is part of a larger trend of institutional accumulation in Q2. ETFs alone scooped up 111,411 BTC, increasing their stash by 8%. That’s like adding a few more zeros to your bank account, but for institutions. 🏦

But the real stars were public corporate treasuries, led by Strategy (formerly MicroStrategy). They bought 131K BTC, growing their stash by 18%. It’s like they’re on a shopping spree, but instead of shoes, they’re buying Bitcoin. 🛍️

On the ETF side, Fidelity was second only to BlackRock’s IBIT, which held 692,887 BTC or 3.3% of the total BTC supply as of July 4th. It’s like being the second-best at being a digital tycoon. 🏆

Fidelity vs. BlackRock

However, according to Fintel data compiled by AMBCrypto, IBIT saw a 9% increase in institutional holder growth compared to FBTC’s 2.6% in early Q3. This means more big players like hedge funds and endowments are piling into BlackRock. 🤝

But overall, share-holdings and capital allocation were down in early Q3, suggesting a trimmed position. It’s like they’re all playing a game of financial musical chairs, but the music just stopped. 🎶

Despite the strong demand from ETFs and public treasuries, the broader spot market demand hasn’t been juiced up. According to CryptoQuant, the apparent demand has dropped to 857K BTC, even though ETFs and Strategy bought 748K BTC. 📉

The analytics firm warns that this broader contraction could cap BTC’s upside in the short term. It’s like trying to climb a mountain, but the mountain keeps moving. 🏔️

“ETFs and MSTR purchases are a portion of Bitcoin demand; overall demand contraction is more than offsetting these purchases, and the acceleration of overall demand growth is what drives price rallies.”

So, while ETFs and Strategy’s buys are positive, they’re not enough to push prices to new all-time highs. The asset was valued at $108.8K at press time, after hitting $110.5K on July 3rd. It’s like being close to the top of the mountain, but not quite there yet. 🏔️

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2025-07-05 02:40