Fidelity Invests $166 Million in Bitcoin and Ethereum, Launches OnChain Asset Initiative
Global asset management giant Fidelity Investments has expanded its position in the cryptocurrency market by acquiring $166.2 million worth of Bitcoin and Ethereum, solidifying its status as a leader among traditional financial institutions moving into digital assets.
According to public filings and on-chain data, the firm purchased 1,005 Bitcoin (BTC) valued at approximately $105.7 million, and 27,175 Ethereum (ETH) worth around $60.5 million. The acquisition was made through its digital asset subsidiary, Fidelity Digital Assets, which manages crypto services for institutional clients.
Institutional Confidence in Crypto Grows
The acquisition comes as part of a broader trend of institutional treasury diversification into crypto assets, once dominated by early movers like MicroStrategy and Block Inc. Fidelity’s move signals a sustained belief in the long-term value of decentralized assets, particularly in an environment of inflationary concerns and rising interest in blockchain-native financial tools.
“We see promise in tokenization and its ability to be transformative to the financial services industry,” said Cynthia Lo Bessette, Head of Fidelity Digital Assets. “It’s about improving transparency and efficiency across capital markets.”
Alongside the crypto acquisition, Fidelity is preparing to launch its first tokenized mutual fund on the Ethereum blockchain. The OnChain share class for the Fidelity Treasury Money Market Fund (FTMM)—registered under the ticker FYHXX—will use Ethereum to record share ownership and transfers.
The new share class, expected to launch by May 30, 2025, will not replace traditional recordkeeping systems but will complement them, enhancing auditability and potentially paving the way for on-chain peer-to-peer fund transfers.
Fidelity has also confirmed internal development of a U.S. dollar–backed stablecoin, which may launch within the next 12 months. This move is seen as a strategic step to support instant settlement and liquidity in tokenized asset markets.
Tokenization Race Among Traditional Finance Giants
Fidelity’s blockchain initiatives place it among a growing number of traditional finance players entering tokenized finance. BlackRock’s BUIDL fund and Franklin Templeton’s Benji Investments have already issued tokenized U.S. Treasury funds on Ethereum and other blockchains. Collectively, tokenized treasury funds now exceed $4.7 billion in value, a more than fivefold increase over the past year.
Ethereum remains the dominant infrastructure for these offerings, hosting over $3.3 billion in tokenized government securities.
“Ethereum is the natural default for institutional tokenization,” said Robbie Mitchnick, Head of Digital Assets at BlackRock, in a recent statement. “It offers the security, scalability, and tooling institutions demand.”
Market Impact and Analyst Reaction
The announcement coincides with a broader rally in crypto markets, with Bitcoin trading above $105,000 and Ethereum nearing $4,000, fueled by easing macroeconomic conditions and renewed institutional inflows.
Analysts view Fidelity’s increased exposure as a signal of maturing corporate crypto adoption. The move is expected to inspire further engagement among asset managers and treasury departments, especially following the U.S. Financial Accounting Standards Board (FASB) update that now permits fair-value accounting for cryptocurrencies.
What’s Next
Fidelity’s bold steps are not just about portfolio diversification—they represent an architectural shift in how traditional finance interacts with digital infrastructure. As tokenized assets gain legal clarity and operational momentum, the bridge between conventional asset management and decentralized finance (DeFi) grows stronger.
With a stablecoin on the way, a live OnChain share class, and over $166 million now invested directly in crypto, Fidelity is emerging as a leading institution redefining modern finance through blockchain.
