Fidelity Moves to Launch Bitcoin Custody Service as a First Crypto Product for Big Investors

Demystifying the complexity of the crypto sphere has been one of the goals of crypto pioneers who look to garner more crowd to the space. While understanding cryptocurrencies and how they work may be a step forward, that doesn’t take away the fear of price volatility, manipulation and lack of a quintessential control mechanism.

To this end, efforts have been made to get a Bitcoin ETF approved that would (to some extent at least) give investors and crypto consumers clarity and assurance over what is going on. And your guess is just as good as mine, ETF’s projects are yet to see the light of the day. And funny enough, they are being denied for the same drawbacks they are intended to alleviate.

Well, the Boston-based financial firm Fidelity Investment has decided to help mitigate the fears of trading cryptocurrencies by creating a range of crypto products. The first of these products was reported to be a Bitcoin custody service aimed at attracting ‘big’ investors like hedge funds to the crypto sphere. The firm disclosed that the Bitcoin custody service will be launched as early as March 2019. They believe this would be a good start to attract and ease investors into the crypto space like a breeze.

The Bitcoin custody service is, in fact, design to assuage probably the greatest fear of investors – the risk of losing their money due to lost or stolen securities. Having a third party hold onto the securities, as Fidelity plans to do, will go a long way to alleviate the fear and concerns of Bitcoin being stolen or lost or the price being manipulated by a different party.

Although a number of crypto startups have played this card before, large investors would rather deal with a reputable firm than a new kid in the block(chain). This distinguishing factor makes Fidelity Investment the best man for the task. And, of course, the mutual fund giant is hoping to leverage its reputable position to attract as many Wall Street investors as possible.

In a statement released by the company on Tuesday, they confirmed that they plan on serving only a select set of eligible clients with their initial solutions. They disclosed their plan to thoughtfully engage with prospective ‘eligible’ clients based on their needs, jurisdiction, and other relevant factors.

A tip from some insiders points the next wave towards Ether custody service, but that isn’t official yet.

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