Fidelity's Bitcoin Stake Hits 1%: Institutional Buying Surge
Fidelity Investments now holds close to 200,000 BTC, representing approximately 1% of Bitcoin's total supply. This significant stake places Fidelity second only to BlackRock's IBIT in terms of institutional Bitcoin holdings.
Institutional Bitcoin Demand Soars
The second quarter of 2025 witnessed a substantial surge in institutional Bitcoin accumulation. Exchange-traded funds (ETFs) acquired 111,411 BTC, an 8% increase in their holdings. However, public corporate treasuries, led by Strategy (formerly MicroStrategy), significantly outpaced ETFs, purchasing 131,000 BTC, resulting in an 18% increase in their Bitcoin holdings.
Fidelity's FBTC ETF Leads the Pack
Fidelity's Bitcoin ETF (FBTC) has experienced exceptionally strong demand. On July 3rd, it attracted $237.13 million in inflows, surpassing BlackRock's IBIT, which saw $224.53 million in inflows. This trend continued from July 2nd, where FBTC dominated inflows, securing $183 million out of the $408 million total inflow for BTC ETFs that day. As of July 4th, FBTC's holdings reached 199,493 BTC, representing $22 billion in net assets and 1.02% of the total Bitcoin supply.
Fidelity vs. BlackRock: A Closer Look
While Fidelity's FBTC ETF shows impressive growth, BlackRock's IBIT boasts significantly larger holdings of 692,887 BTC (3.3% of total supply) as of July 4th. Fintel data reveals that IBIT saw a higher institutional holder growth rate of 9% in early Q3 compared to FBTC's 2.6%, indicating greater interest from major institutional investors like hedge funds and endowments in BlackRock's offering. Early Q3 data also shows decreased overall share holdings and capital allocation, suggesting potential portfolio rebalancing or diversification by larger players.
Market Impact: Demand vs. Price
Despite the robust demand from ETFs and public treasuries, this hasn't translated into a substantial increase in Bitcoin's spot market price. CryptoQuant data indicates that apparent demand has contracted to 857,000 BTC, despite ETF and Strategy purchases totaling 748,000 BTC. This suggests that other factors are influencing the market, and that the current level of ETF and corporate buying is not sufficient to drive Bitcoin to new all-time highs. According to CryptoQuant, "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."
At press time, Bitcoin was trading around $108,800, having briefly reached $110,500 on July 3rd.
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