Fidelity plans to offer crypto trading within “a few weeks”

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Judging by yesterday’s Bloomberg reports, Fidelity Investments is planning to offer the world’s most popular crypto asset to their institutional customers within a few weeks. 

What is Fidelity?

Fidelity Investments is a Boston-based American multinational financial service corporation. It is commonly referred to as one of the largest asset managers in the world with $2,46 trillion in assets under management. Also, their combined total customer asset value is around $6,7 trillion. Moreover, they operate a brokerage firm, provides fund distribution and investment advice, retirement services, wealth management, securities execution and clearance, and life insurance.

Plans to offer cryptocurrency trading to customers

In October 2018, Fidelity created “Fidelity Digital Assets” based on their belief that Wall Street will soon start trading and safeguarding digital assets. This has put them in front of their competitors as other firms hasn’t publicly shown any interest in digital currencies.

Now Fidelity would join brokerages like E*Trade Financial Corp. and Robinhood in order to offer crypto assets to their clients. However, Fidelity is targeting institutional customers not like Robinhood or E*Trade – retail investors. Fidelity backs their actions with their study which they released on May 2. It show that around 47% of institutional investors think that digital assets are worth investing in.

“We currently have a select set of clients we’re supporting on our platform. We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin,” says Fidelity spokeswoman Arlene Roberts.

Digital Gold – Bitcoin.

Bitcoin is up more than 50% this year, recovering from the 2017 bull run all-time-highs when it surged to around $20,000. Now the digital asset sits at $5,900 looking to touch one of the most important trend-lines at $6,300.

The question, that most Bitcoin investors after reading this news, would be – will this affect the price of Bitcoin? It is not quite clear whether Fidelity will open up a digital asset brokerage or sell these assets using the OTC (over the counter) method. One thing is for sure – institutional investors are eying cryptocurrencies, especially Bitcoin. Not long after, Fidelity’s competitors will also start looking into the crypto niche. This will drive user adoption and new money coming into crypto. Referring to Fidelity’s survey where they questioned 441 investors – 72% prefer to buy investment products that HOLD digital assets, while 57% prefer to buy them directly.

Source:

https://www.bloomberg.com/news/articles/2019-05-06/fidelity-said-to-offer-cryptocurrency-trading-within-a-few-weeks?srnd=cryptocurrencies
https://www.bloomberg.com/news/articles/2019-05-02/fidelity-survey-finds-institutional-investors-are-eyeing-crypto
https://en.wikipedia.org/wiki/Fidelity_Investments

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