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An interest from BlackRock and Fidelity in BTC and ETH could trigger more assurance among traders.
As the crypto winter persists, with investors beginning to lose hope in a rebound, investment management company BlackRock (NYSE: BLK) and financial services corporation Fidelity Investments quietly expand into the world of BTC, ETH, and other crypto assets. Black and Fidelity are making a move in the crypto space despite the brutal losses that cut the market and caused BTC and ETH to decline massively.
It is no longer news that the crypto market is currently in the red. The prices of Bitcoin, Ethereum, Cardano, XRP, and more have lost value significantly, pulling investors down the dark hole. With many cryptocurrencies trading far below their record levels, fingers are crossed on what the year holds for crypto investors. Bitcoin, which once traded for more than $60,000, currently sells for around $28,000. As a matter of fact, the number one asset just garnered some gains, having recently fallen below $20,000. While some believe crypto is a sham, others remain optimistic, hoping it is almost time for a positive turnaround. Bitcoin has added about 70% since 2023 as traders get set for a possible Federal Reserve earthquake. On the other hand, the price of Ethereum is $1,788.86.
BlackRock and Fidelity Quietly Expanding into BTC and ETH Market
An interest from BlackRock and Fidelity in BTC and ETH could trigger more assurance among traders. There may indeed be something to look for as the companies, with combined assets under management worth $14 trillion, shift their focus on crypto at this troubling time. BlackRock CEO Larry Fink spoke in detail about digital assets in his annual letter to shareholders. He mentioned that crypto had made several headlines over the past year. Referring to FTX collapse, Fink said the space still experiences “very interesting developments” regardless. Also, he talked about the potential advancements in the asset management industry. The chief executive wrote:
“At BlackRock we continue to explore the digital assets ecosystem, especially areas most relevant to our clients such as permissioned blockchains and tokenization of stocks and bonds. While the industry is maturing, there are clearly elevated risks and a need or regulation in this market. BlackRock is committed to operational excellence, and we plan to apply the same standards and controls to digital assets that we do across our business.”
Meanwhile, Fidelity has expanded its Fidelity Crypto service to a larger audience after announcing an early waitlist in November. Sources said users could trade Bitcoin and Ether without paying a commission.
Cryptocurrencies have been intensely unstable as they continue to surge and crash before surging again. With the current situation, many analysts are pointing to the coming Bitcoin halving as a potential catalyst for the next bull run. The head of research at Galaxy, Alex Thorn, commented:
“We’re about a year away from bitcoin’s next halving. Historically, these have been bullish events for the digital asset.”
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