Such an interest resulted from the COVID-19 pandemic. Before, there was attention from institutional investors, but nobody considered serious investments in cryptos. However, as high-profile investors began to talk about Bitcoin as a hedge against inflation, the fire started.
In a recent interview with the Boston Globe, one of the largest asset managers Fidelity Investments has revealed that it is diving deeper into cryptos and making a long-term strategy that centers around Bitcoin (BTC) and Ethereum (ETH). According to Fidelity, 90% of its clients are asking about Bitcoin.
Christine Sandler, the head of sales and marketing for Fidelity Digital Assets, commented:
“We’re dealing with the more traditional investors, and the entry vehicle to this space is largely Bitcoin. Interest in things like Ethereum has been escalating in the last few months, but it’s not anything close to what we see in Bitcoin.”
As Fidelity Digital Assets President Tom Jessop explained, such an interest resulted from the COVID-19 pandemic. Before, there was attention from institutional investors, but nobody considered serious investments in cryptos. However, as high-profile investors began to talk about Bitcoin as a hedge against inflation, the fire started.
Fidelity has a complete understanding of the necessity to provide full regulation guidance and a lawful framework on Bitcoin. Therefore, as Jessop said, they support regulation, especially considering Bitcoin’s environmental impact. However, the regulation should be consistent with other financial products that consumers and institutions purchase today.
Further, Fidelity wants to bring more individual investors to crypto, not only wealthy individuals or hedge fund managers. To do that, Fidelity is planning to focus on supporting registered investment advisers.
“Advisers want to keep assets on the platform. Otherwise, the client wires out X amount of dollars to fund their Coinbase account or their PayPal account.”
He concluded, saying that the world is still at the early stage of crypto development and we are at the edge of a new era.
Fidelity’s Road to Crypto World
Fidelity Investments started crypto research and development efforts in 2014. In 2015, it began mining Bitcoin. Then, in 2016, Fidelity tested its first wallet and storage solution with employees. In 2018, Fidelity launched Fidelity Digital Assets, a division that provides enterprise-grade custody and execution services for institutional investors.
It was in March of this year, Fidelity submitted the S-1 document to the Securities and Exchange Commission (SEC) to get the approval of their own Bitcoin ETF named Wise Origin Bitcoin Trust. Further, at the end of July, Fidelity acquired a 7.4% stake in North American crypto miner Marathon Digital Holdings that was worth $20 million.
In addition, Fidelity has created its own specialized venture capital division called Devonshire Investors. It is investing in cryptocurrency startups like ErisX, Talos, and Coin Metrics.