Fidelity Canada Recommend 1-3% of Crypto Allocation in Portfolios

The Canadian subsidiary of the financial services company Fidelity’s new all-in-one ETF page now recommends 1-3% allocations for crypto in its four flagship products.

The company bills its all-in-one products as a way to “get a complete portfolio in one ETF.” That crypto is included as a 1% allocation in Fidelity’s “all-in-one conservative fund,” suggests the asset manager considers at least some digital assets as de-risked in terms of an offering to the average retail investor. The asset manager recommends a 3% allocation on its Growth and Equity portfolios.

The development is another step in crypto’s progression towards adoption in traditional finance. With $12.6 trillion assets under administration and 38.7 million retail accounts, according to its 2023 annual report, Fidelity is one of the world’s largest asset managers and has continued its push to offer products for digital assets.

Fidelity is one of the eleven companies which received approval from the SEC to offer a BTC ETF in January. Its BTC ETF has $5.3 billion in assets under management, according to a well-cited analytics dashboard.

The crypto exposure in Fidelity’s all-in-one ETFs comes from allocations into its BTC ETF. The company also offers Fidelity Crypto, a product for digital asset trading.

Canada has traditionally led the U.S. in terms of crypto’s adoption — the country approved its first BTC ETFs in 2021, nearly three years before the SEC approved similar products in the U.S.

If Canada is a leader in terms of crypto adoption, U.S. investors hoping for an ETH ETF in their home country can look to their northern neighbors for a sign of the future — Canada approved its first ETH ETF just two months after its first BTC ETF in 2021.