Fidelity Affiliate Joins $3.5 Million Blockchain Firm Funding Round

Blockchain analytics firm Elementus has raised $3.5 million from backers including a sister company of crypto-friendly asset manager Fidelity Investments.

Morgan Creek Digital leads fresh cash injection

As Fortune reported on Sept. 23, Elementus, which launched its offering in 2017, also gained capital from Stage 1 Ventures and Robot Ventures.

Morgan Creek Digital, the crypto-focused asset manager co-founded by well-known commentator Anthony Pompliano, led the round. 

The tie to Fidelity came in the form of Avon Ventures, a subsidiary of the private equity arm of Fidelity’s parent company, FMR.  

Blockchain-not-Bitcoin investments decline

According to Crunchbase, the $3.5 million is only the second for Elementus, having secured $800,000 in a seed round in April 2018. 

The company provides insights into the cryptocurrency sphere, one recent expose in August highlighting exchanges’ handling of illicit proceeds from alleged Ponzi scheme PlusToken.

Executives have yet to provide public confirmation of the funding. 

As Cointelegraph reported, investments focusing on blockchain rather than Bitcoin have tailed off this year. Research from CB Insights in July showed a 60% decline, as an analyst from the company warned early enthusiasm around blockchain tech was beginning to wane.