He doesn't know that.  That's a statement that's patently untrue.  Big institutions, and investors of all sizes have bought investments (stocks, real estate, commodities, etc.) at peak values before.  Just because someone or some organization has money/influence/power doesn't mean they can predict the market or even influence it as much as you think they can.

I thought there was another thread about this already.  I recall writing that I would be concerned about things like university endowments and pension funds investing in crypto.  That might be a great thing for the price of bitcoin in the short term, but it could end up being hell on wheels for those universities and retirees down the line. 

As far as Fidelity offering this service to the big players, I think it's a great thing for crypto.  What I'm worried about is how much leverage those investors are going to use and what could happen if and when they decide to sell all at once. 

A lot of people would be very happy with that amount, especially those looking to protect significant wealth as opposed to creating said wealth.  However, hedge funders and mutual fund managers are judged by their performance relative to the whole market's performance, so sometimes 5% might be great, other times it would be awful.