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Fidelity to Add Bitcoin Exposure to Asset-Allocation Funds

“The decision to add a smaller allocation to the Fidelity Advantage Bitcoin ETF within the fund in the all-in-one suite was made for its diversification benefits, which have the potential to improve risk-adjusted returns,” the firm said in a release.

Due to the additional crypto allocation, the firm said that it will update the risk ratings of its all-in-one growth ETF and its related mutual fund variant on or around January 21, 2022:

Fund

current risk rating

new risk rating

Fidelity All-in-One Growth ETF

low to medium

medium

Fidelity All-in-One Growth ETF Fund

low to medium

medium

Since the introduction of the world’s first bitcoin ETF in Canada last year, investment fund providers in Canada have introduced a number of new ETF products that provide exposure to not only bitcoin but also ether. Other products have also been introduced to provide multi-crypto asset exposure, as well as cover-call exposure for cryptocurrencies.

According to National Bank’s recent Canadian ETF Flow Report, during 2021, Canadian investors invested $5.97 billion in crypto-asset ETFs.

“The inflow into crypto-asset ETFs was right out of the gate, halting only briefly after a major (but distinctive) bitcoin price drop in the summer months,” the report said. “We find that the flow of crypto-asset ETFs is highly correlated with the prices of bitcoin and ethereum, both of which are famously volatile and extremely risky.”

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