Fidelity’s Bitcoin exchange-traded fund (ETF) has achieved a new record as the largest single investment in a Bitcoin fund, attracting $40 million from two traditional United States financial advisers. 

According to Bloomberg analyst Eric Balchunas, financial advisers Legacy Wealth Management and United Capital Management of Kansas have each recently invested $20 million in shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), joining the fund’s top shareholders.

Legacy Wealth Management oversees more than $359 million in assets under management, while United Capital Management of Kansas manages over $436 million. The figures are part of recent 13F form filings submitted by asset managers to the U.S. Securities and Exchange Commission (SEC) for the first quarter of 2024.

Source: Eric Balchunas

According to data from investment research firm Fintel, Bitcoin ( BTC ) represents 6% and 5% of the funds’ portfolios, respectively.

Bloomberg’s Balchunas believes the figures indicate a growing adoption among traditional investors. “This is as Boomer as it gets,” he noted on X in reference to United Capital Management of Kansas.

“Likely a wonderful sight for those hoping to see long-term adoption and an absolute nightmare for the RIA Skeptics Branch of the Underwhelmers Club,” he added.

However, the recent disclosures have prompted some to express concerns regarding the limited mainstream participation in BTC ETFs.

Jim Bianco, founder of macro research firm Bianco Research, described the first-quarter allocation data as a “disappointment.” “Unrealized gains are shrinking fast,” he added, referring to ETF investor gains versus current Bitcoin prices.

Fidelity’s BTC fund is the second-largest Bitcoin ETF in terms of assets under management, with over $10 billion at the time of writing, just behind BlackRock's iShares Bitcoin Trust (IBIT), which holds more than $18 billion.

Despite newcomers and growing adoption among traditional investors, Bitcoin ETFs are experiencing a slowdown in demand. CryptoQuant CEO Ki Young Ju  noted on X that the demand for BTC funds has stagnated since its peak in March.

On April 15, Bitcoin ETFs experienced net outflows of $36.7 million . According to Farside Investors, only Grayscale and BlackRock recorded positive flows on April 12 and April 15, while all other funds saw outflows.

Magazine: Get Bitcoin or die tryin’: Why hip hop stars love crypto