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A recent Bloomberg report from May 6 reveals that Fidelity Investments, the fifth-largest firm in asset management, is all set to debut Bitcoin trading for institutional clients in the coming weeks. According to an anonymous source, this will be in addition to the existing range of services on the part of Fidelity Digital Assets.
Fidelity spokeswoman, Arlene Roberts, has stated:
“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.”
This huge news comes amidst reports that claim that a number of online stock brokerage firms like E*Trade Financial, and TD Ameritrade are also preparing to launch their own cryptocurrency trading services and firms like Goldman Sachs and other banking institutions might enter this space sooner than we think. This is just another sign that a lot of traditional financial institutions are eager to establish their respective cryptocurrency services.
Fidelity is no stranger to this though, as the announcement comes after a new Fidelity’s survey, which comes to the conclusion that institutional investors are very interested in using digital assets to add to their portfolios, with over 46% ready to invest over the next five years. Fidelity has previously hired Barclays’ former head of digital assets for the cryptocurrency services.
The giant firm, with around $7.2 trillion assets under their management, will most likely open up their BTC trading to over 27 million customers. This revelation comes right after a 10% price hike in BTC, a good sign in the otherwise rocky week for the crypto market. Fidelity firmly roots for cybersecurity which is its next main focus, trying to create a “cold storage” solution that is vaulted, for their customers’ benefit.
Another interesting fact is that Fidelity has kept mum on whether the services offered will be spot market trading, an over the counter solution, or a liquid aggregator for its very long list of clients.
Analysts are sure that this is a particularly bullish news for the crypto market, and investors are being advised to keep their eyes and ears open for further development.
Mati Greenspan, eToro’s senior markets analyst, has made it very clear that while Fidelity does not lead the world into cryptocurrency related services, it is most likely “the biggest.” This places huge expectations on the financial giant in terms of future developments, but Greenspan is of the opinion that even a 1% allocation on the part of Fidelity’s client list can easily boost BTC by around $1,000 to $2,000.
While the task to make crypto a household name is still ongoing, and far from over, it remains to be seen whether it will find broad acceptance. But in spite of all that, the fact that a huge firm like Fidelity places so much trust in the cryptocurrency sphere is a feather in its cap indeed.
While a fraction of society, like economics professor Nouriel Roubini, still vehemently opposes cryptocurrency, Bitcoin has increased in price by over 50% this year, in the volatile market of cryptocurrency.
With Fidelity being one of the major brokerage firms in the US, having over 140 locations under its grasp, this is yet another win for Bitcoin.