íàçâàíèå

Fidelity’s Cryptocurrency Arm Starts Offering Institutional Investor Services

Fidelity’s Cryptocurrency Arm Starts Offering Institutional Investor Services

Fidelity Investments new cryptocurrency arm is now up and running. The unit, Fidelity Digital Assets, began operations earlier this quarter but didnt make any noise about it. It has already started offering trade execution and crypto custody services to institutional investors such as hedge funds and private wealth management firms.

Also read: UN Panel: North Korea Hacked $571M From Asian Crypto Exchanges


Bear Market What Bear Market?

Tom Jessop, who heads Fidelity Digital Assets, told CNBC that the so-called crypto winter hadnt affected the rolling out of operations at the new unit. Weak prices have also failed to put a damper on the companys institutional cryptocurrency offerings, he stated.

In terms of our pipeline, prices really havent had an impact. If you started a crypto fund at the height of the market you’re probably hurting right now,” Jessop was quoted as saying, on Mar. 8. Fidelity Investments first announced the creation of its cryptocurrency subsidiary last October.

However, since the announcement, bears have continued to dominate the market. Last year, bitcoin core lost more than 80 percent of its value, skidding from a peak of almost $20,000 to $3,879 as of this writing.

In 2019, prices have appeared to stabilize between $3,300 and $4,000. But conservative institutional investors, such as those courted by Fidelity, have hesitated to enter the cryptocurrency space. Thats partly due to concerns over bitcoins volatility, which can swing or crash by as much as 10 percent within a matter of hours.


Wait and See Attitude

Jessop admitted that institutional investors are still in “wait and see” mode where cryptocurrency investments are concerned. However, he explained that there is long-term interest from such investors to add some crypto to their portfolios. Many corporate investors consider cryptocurrency a store of value during a crisis, while others look at it as an opportunity to trade. Jessop opined:

If anything, they (institutional investors) are as encouraged now as they were when prices were higher. At some point, there will be an attractive entry point. But by the same token people don’t want to be early even if we’re well off the highs.

To establish the level interest, Fidelity surveyed about 450 institutions, including the rich, hedge funds and endowments, CNBC reported. The results showed 22 percent of the respondents already owned cryptocurrency and were planning to double their portfolios.

Fidelity Digital Assets will help these investors to buy and sell cryptocurrencies across several exchanges as well as store the digital assets safely. Jessop also revealed that some aspects of the business remained a work in progress, such as expanding the areas where it can do business while attending to competing client needs, some of whom require a bit of education in crypto investing.

Fidelity’s entry into the cryptocurrency industry is viewed as a major turning point for drawing institutional investors into the same space. The 72-year old family-run company manages retirement plans and mutual funds.


Express yourself freely at Bitcoin.coms user forums. We dont censor on political grounds. Check forum.Bitcoin.com

The post Fidelity’s Cryptocurrency Arm Starts Offering Institutional Investor Services appeared first on Bitcoin News.

09.03.2019 / 05:30 48
Fidelity Won’t Build Its Own Exchange, Focused on Bitcoin Custody, Exec Confirms Fidelity Won’t Build Its Own Exchange,
Tom Jessop, President of Fidelity Digital Asset Services says that the asset manager will take crypto to the next level by enhancing the sector and
We Will Provide Missing Link for Institutional Investors, Says Fidelity Crypto Head We Will Provide Missing Link for
The president of Fidelity Digital Asset Services has spoken about the companys plans in an interview, such as the decision not to launch an in-house
Billionaire Mike Novogratz’ Crypto Fund is Fidelity’s First Custodian Client Billionaire Mike Novogratz’ Crypto Fund
Galaxy Digital, a crypto merchant bank operated by billionaire investor Mike Novogratz listed on Toronto-based stock exchange TSX-V, has become the
Fidelity Launching Crypto Custody and Trading Services Fidelity Launching Crypto Custody and
Fidelity Investments has announced the launch of a new company dedicated to providing cryptocurrency services including custody and trade execution.
Fidelity Becomes First Wall Street Firm to Launch Crypto Branch Trading Desk Fidelity Becomes First Wall Street Firm
Fidelity Investments has announced that its launching a new cryptocurrency trading arm, called Fidelity Digital Asset Services, that will handle
Fidelity Debuts Institutional Trading and Custody Platform for Bitcoin and Ethereum Fidelity Debuts Institutional Trading
American brokerage giant, Fidelity Investment finally debuts its cryptocurrency trading platform for institutional investors. The 72-year old finance
Comments (0)
Add a comment
Comment on