Bitcoin News Today: Fidelity Vaults to $25.9B in Crypto ETFs as Bitcoin and Ethereum Surge

Fidelity’s digital asset exposure has surged by more than $5.3 billion year-to-date in 2025, reflecting a significant expansion in its cryptocurrency holdings. According to Finbold research, the firm’s two flagship spot crypto ETFs—Fidelity Bitcoin ETF (FBTC) and Fidelity Ethereum ETF (FETH)—reported combined holdings of 201,163 BTC and 462,250 ETH as of January 1, 2025, valued at $20.55 billion. By August 20, 2025, those holdings had increased to 199,127 BTC and 728,939 ETH, totaling $25.92 billion at prevailing market prices. This represents a 26.1% growth in value over a span of less than eight months.

The growth in Fidelity’s exposure has been driven by both Bitcoin and Ethereum, although the dynamics differ between the two assets. While BTC holdings decreased slightly in terms of unit volume (by around 2,000 BTC), their dollar value rose by $3.76 billion, or 19.8%, fueled by Bitcoin’s price increase from $92,595 to $113,500. Ethereum, on the other hand, accounted for the majority of the growth. Fidelity’s ETH holdings jumped by 62% in volume, from 462,250 to 728,939 tokens, which translated into a 103.9% rise in value, from $1.55 billion to $3.16 billion.

Beyond its ETFs, Fidelity’s involvement in the crypto space extends to its custody services. Data from Arkham indicates that Fidelity Custody’s digital asset holdings reached $46.21 billion as of August 20, 2025, a nearly $10 billion increase from the start of the year. These custodial activities include managing assets for institutional clients such as corporates and hedge funds, further solidifying Fidelity’s role as a key custodian of institutional-grade digital assets.

The broader institutional adoption of crypto is also reflected in the performance of U.S. Bitcoin ETFs. As of August 17, 2025, U.S. spot Bitcoin ETFs collectively held 1.25 million BTC, a historic milestone. BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with 748,968 BTC, while Fidelity’s FBTC holds 199,798 BTC. Together, the two funds control more than 75% of the market share for U.S. Bitcoin ETFs, signaling a shift in market power from legacy funds like Grayscale to newer, more competitive players. This development underscores a broader trend of institutional investors favoring ETFs for their regulated and liquid exposure to Bitcoin.

The increasing dominance of BlackRock and Fidelity in the Bitcoin ETF space has significant implications for the asset’s institutional adoption. The 1.25 million BTC mark not only highlights sustained demand from U.S. institutions but also signals the integration of Bitcoin into traditional investment portfolios. As ETFs continue to attract capital, Bitcoin’s role as a mainstream financial asset appears to be further entrenched. This shift in market structure, from a single dominant fund to a competitive landscape led by multiple institutional players, reflects the maturation of the crypto market and its growing acceptance in Wall Street.

Source: [1] Fidelity's crypto holdings climb by $5 billion in 2025 (https://finbold.com/fidelitys-crypto-holdings-climb-by-5-billion-in-2025/) [2] BlackRock and Fidelity Push U.S. Bitcoin ETFs to Record 1.25M BTC (https://defi-planet.com/2025/08/blackrock-and-fidelity-push-u-s-bitcoin-etfs-to-record-1-25m-btc/) [3] BlackRock, Fidelity and Grayscale Dump Their Ethereum (https://dailyhodl.com/2025/08/21/blackrock-fidelity-and-grayscale-dump-their-ethereum-as-other-whales-panic-sell-amid-eth-correction/)