Fidelity and ARK expand Bitcoin holdings with $196 million purchase

Fidelity Investments and ARK Invest have increased their Bitcoin exposure. The total purchase price is $196.2 million, according to new on-chain data from Arkham Intelligence. This influx marks a sharp turnaround for both companies. This was part of a broader institutional sell-off across US Bitcoin spot ETFs recently. The move signals renewed confidence in Bitcoin’s long-term potential. Even though the crypto market continues to face volatility and mixed investor sentiment.

Fidelity boosts Bitcoin by over $200 million

According to data, the Fidelity FBTC ETF recorded a series of large BTC transfers over the past 24 hours. This totals approximately $197 million in new inflows. These transactions include several large transfers ranging from $15 million to $80 million. Each corresponds to a wallet address associated with a Fidelity Bitcoin fund. The Fidelity ETF acquired a total of over 2,880 BTC. It also shows strong demand for institutions. As BTC struggles to maintain momentum above key resistance levels.

The timing of these purchases suggests that Fidelity may be preparing for a potential upside in the ETF toward the end of the year. Earlier this year, the Fidelity FBTC fund also attracted attention for its rapid inflows in October. The company purchased $112.3 million worth of Bitcoin, which was followed by a wave of short-term redemptions. Despite market fluctuations, Fidelity’s consistent accumulation demonstrates the company’s continued confidence in Bitcoin as a long-term store of value.

ARK Invest joins the accumulation trend

Cathie Wood’s ARK Invest also increased its Bitcoin holdings through the ARKB 21Shares Bitcoin ETF. Multiple transactions totaling approximately $131 million. According to Arkham data, ARK added over 1,270 BTC in multiple transfers, mostly sent through Coinbase Prime. The move marks a significant change after ARK recorded $143 million in outflows from its Bitcoin ETF just a few days ago.

Recent inflows suggest that ARK is rebalancing its exposure. Perhaps it is taking advantage of the recent drop in Bitcoin prices to accumulate at lower levels. ARK Invest has long maintained a bullish stance on Bitcoin. This is often highlighted by traditional finance and its potential as a hedge against inflationary pressures. The acquisition supports the company’s view that institutional adoption will continue to grow as regulatory transparency improves.

Institutional investor confidence recovers despite volatility

The new buying by Fidelity and ARK comes after a period of turmoil for Bitcoin ETFs. On October 30th, institutional investors sold $396 million worth of Bitcoin. This was the largest single-day outflow in recent months. Both Fidelity and Ark led the decline. This has raised concerns that institutional investors’ appetite will weaken.

However, the latest data paints a more optimistic picture. The new inflows suggest that major asset managers are once again bullish on Bitcoin. Demand is likely to increase in the coming months. In fact, Bitcoin continues to hover around key technical levels. As a result, new institutional accumulation by giants like Fidelity and ARK could pave the way for the next phase of market recovery. So this is an indication that the smart money may already be preparing for the next stage.