In a recent interview with the Boston Globe, one of Fidelity Investments’ largest asset managers revealed that he became more deeply involved in cryptocurrencies and creating a long-term strategy centered around Bitcoin and Ethereum. According to Fidelity, 90% of its clients ask about BTC.
Christine Sandler, Head of Sales and Marketing at Fidelity Digital Assets, said:
“We are dealing with more traditional investors and the means of entry into this space is largely BTC. Interest in cryptocurrencies like ETH has escalated in recent months, but it’s nothing like what we see at BTC. “
90% of Fidelity clients ask for BTC
As Fidelity Digital Assets President Tom Jessop explained, such demand is the result of the COVID-19 pandemic. Institutional investors have shown interest before, but no one has considered serious investments in cryptocurrencies. However, when major investors began to talk about BTC as a hedge against inflation, it started to burn.
Fidelity fully understands the need to provide clear regulatory guidance and a legal framework for BTC. Therefore, as Jessop said, they support regulation, especially with regard to the environmental impact of the primary cryptocurrency. However, the regulation should be in line with other financial products used by consumers and institutions today.
Fidelity also wants to bring more individual investors to the cryptocurrencies, not just wealthy individuals or hedge fund managers. To this end, Fidelity plans to focus on supporting registered investment advisers. Jessop stated:
“Advisors want to keep assets on the platform. Otherwise, the client can transfer X dollars to his Coinbase or PayPal account. “
He concluded that the world was still in the early stages of cryptocurrency and that we were on the brink of a new era.
Fidelity and its journey through the world of cryptocurrencies
Fidelity Investments started operations in 2014. In 2015, BTC started operating. Then, in 2016, Fidelity tested its first wallet and storage solution. In 2018, Fidelity launched Fidelity Digital Assets, a division that provides enterprise-level management services to institutional investors.
It was in March of this year that Fidelity submitted an S-1 document to the Securities and Exchange Commission (SEC) to obtain approval for their own BTC ETF called the Wise Origin BTC Trust. At the end of July, Fidelity also bought a 7.4% stake in North American mining company Marathon Digital Holdings for $ 20 million.
In addition, Fidelity has created its own specialized venture capital division called Devonshire Investors. It invests in cryptocurrency startups such as ErisX, Talos and CoinMetrics.
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