Fidelity has been quietly but significantly increasing its exposure to digital assets this year. New research from Finbold, drawing on data from Lookonchain and Arkham, shows that the firm’s cryptocurrency holdings have grown by more than $5.3bn in 2025 alone.
That surge cements Fidelity’s status as one of the most important traditional finance houses shaping the institutional crypto market.
On January 1st, Fidelity’s two flagship spot ETFs — the Fidelity Bitcoin ETF (FBTC) and Fidelity Ethereum ETF (FETH) — held 201,163 Bitcoin and 462,250 Ether, worth $20.55bn. By August 20th, those balances had shifted to 199,127 Bitcoin and 728,939 Ether, together valued at $25.92bn. In less than eight months, the firm’s crypto ETF exposure has swelled by $5.37bn, a 26% increase.
Ether ascendant for Fidelity
Most of the growth has come from Ethereum. Fidelity’s Ether stash has jumped by 62% in token terms, from 462,250 to nearly 729,000. In dollar terms, the position has more than doubled, rising from $1.55bn to $3.16bn. By contrast, its Bitcoin balance dipped modestly in units, yet the rising BTC price — from $92,595 to $113,500 — still boosted the value of its Bitcoin holdings by almost $3.8bn.
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This divergence underscores a shift in institutional behaviour. Bitcoin remains the anchor, but Ether is increasingly seen as the infrastructure layer of the digital economy. Jordan Major of Finbold notes that Ethereum’s prominence within Fidelity’s ETFs suggests institutions no longer treat it merely as a “second fiddle” asset. Instead, it is being positioned as a core building block for decentralised finance and tokenised applications.
Fidelity’s crypto involvement is not confined to exchange-traded products. Through Fidelity Custody, the firm safeguards digital assets for corporates, hedge funds and other institutions. According to Arkham, the value of assets held in custody rose from $36.22bn at the start of the year to $46.21bn by late August. That nearly $10bn gain highlights how rapidly institutional demand for secure custody is scaling, as more conservative investors enter the market via regulated intermediaries.
Competitors are taking note. BlackRock’s crypto portfolio has surged by $49bn this year, and JPMorgan is testing tokenisation platforms for clients. One research analyst at Finbold frames it as a contest for dominance: “Traditional finance giants are now in open competition to control ETF flows and custody balances. The acceleration of Fidelity’s holdings signals that this race is well underway.”
Fidelity now one of the largest crypto custodians globally
For Fidelity, a 78-year-old asset manager best known for mutual funds and retirement accounts, the pivot into crypto has been unusually bold. Its decision to launch spot ETFs and build out custody operations has given it a head start over many peers still hesitant to embrace the asset class. Managing more than $45bn in digital assets today, Fidelity is now among the largest crypto custodians in the world.
The expansion also underscores a broader structural trend. As U.S.-listed spot ETFs deepen their foothold, institutional flows into crypto are becoming steadier and less cyclical. For investors, that means price action is no longer driven solely by retail speculation but increasingly by long-term asset allocation decisions inside the largest financial firms.
For Fidelity, the $5bn expansion in 2025 is less a speculative punt than a strategic play to cement its role as a gatekeeper of institutional crypto. For the market, it is another sign that digital assets are moving firmly into the mainstream of global finance.
