Cryptocurrency

Fidelity Digital Assets Undeterred by Bear Market, Institutional Investors ”As Encouraged Now As When Prices Were Higher”

Fidelity Digital Assets Undeterred by Bear Market, Institutional Investors ”As Encouraged Now As When Prices Were Higher”

The financial services giant Fidelity Investments is not letting bearish market sentiment impact its cryptocurrency plans. Rather, a recent report from CNBC details that excitement for cryptocurrency is as high as they have ever been.

The slump in prices has not dampened cryptocurrency interest

Specifically, CNBC spoke with Tom Jessop, the head of Fidelity Digital Assets. Fidelity Digital Assets is a relatively new company, created by Fidelity last year.

Moreover, Fidelity has been quietly launching cryptocurrency trade execution and custody operations over the past few months. Fidelity Digital Assets has reportedly been working with both family offices and hedge funds.

According to Jessop, the slump in cryptocurrency prices has not dampened the interest for Fidelity Digital Assets institutional cryptocurrency products.

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Although Jessop ceded that anyone who launched a cryptocurrency fund at the height of the cryptocurrency market is ”probably hurting right now”, he said that declining cryptocurrency prices ”haven’t had an impact” on Fidelity Digital Assets’ launch.

”In terms of our pipeline, prices haven’t really had an impact. If anything, they are [institutional investors] as encouraged now as they were when prices were higher.”

Furthermore, Jessop detailed that there exists significant long-term attraction towards cryptocurrency among institutional investors who are looking to diversify their financial portfolios.

In addition to this, CNBC reports that Fidelity Digital Assets had interviewed around 450 institutions, with approximately 22% of these reporting that they already own cryptocurrency. Moreover, these noted that they expect to double their holdings over the coming five years.

Ari Paul: Cryptocurrency culture at Fidelity is ”bonkers”

As such, it is easy to see why Fidelity is betting hard on the cryptocurrency sector. However, sparse general knowledge about cryptocurrency is seen as one of the major barriers to greater adoption of cryptocurrency.

Nevertheless, Jessop confirmed that firms are increasingly looking to educate themselves regarding blockchain and cryptocurrency. ”They’ve approached us wanting to learn, which is an encouraging sign,” Jessop said.

With that being said, Jessop noted that although knowledge of cryptocurrency is linked to greater acceptance, there will still likely be a ”cohort of people that once they get educated will still have a negative view.”

Furthermore, the co-founder of crypto asset investment firm BlockTower Capital, Ari Paul, recently tweeted that Fidelity’s cryptocurrency culture is ”bonkers” with ”hundreds of passionate [cryptocurrency] advocates at every level of seniority at the firm.”

What’s more, Paul also argued that Fidelity’s cryptocurrency custody security is ”unparalleled”, and that company has ”more people working on crypto than the 5 biggest crypto funds combined.”

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