The major US investment firm Fidelity Investments is supposedly looking to support institutional Bitcoin trades within the near future. Moreover, the notion that Fidelity starts institutional Bitcoin trading within a mere matter of weeks comes as the premier cryptocurrency continues to hold at relatively high levels.
This will join Fidelity’s existing cryptocurrency custody solution
Specifically, this news comes from a fresh Bloomberg report. The premise that the Bolton-based firm, which manages a massive $7 trillion in investments, would offer institutional cryptocurrency trading would be a major announcement.
Nevertheless, a person ”familiar with the matter” reported that this is exactly what Fidelity intends to do. Furthermore, the anonymous source also noted that this could put Fidelity ”a step ahead of the competition” when it comes to institutional cryptocurrency trades.
However, this is not Fidelity’s first foray into the world of cryptocurrencies. Rather, Fidelity began offering a custody service for Bitcoin earlier this year, as part of the firm’s virtual assets division, Fidelity Digital Assets.
This came as part of a bet by Fidelity that Wall Street and institutional investors will increasingly begin trading cryptocurrencies, and will consequently need a way to safeguard these assets. Fidelity has also long talked of offering over-the-counter trading to its clients.
This latest report means that Fidelity is apparently doubling down on its belief that there’s an appetite for cryptocurrency trading among institutional investors.
According to the Bloomberg article, this would see Fidelity join actors such as Robinhood and E*Trade Financial Corp. in offering cryptocurrency trading to clients. However, Bloomberg’s anonymous source highlighted that Fidelity would exclusively be targeting institutional customers.
47% of institutional investors are already interested in cryptocurrency investing
What’s more, it would seem that there is ample of demand for a service such as this. A recent study released by none other than Fidelity revealed that a whopping 47% of institutional investors want to invest in digital assets.
Furthermore, a Fidelity spokeswoman, Arlene Roberts, has seemingly confirmed that this institutional Bitcoin trading offering is indeed in the works. ”We currently have a select set of clients we’re supporting on our platform,” Roberts wrote in a recent email.
”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.”
Many observers have long heralded the entry of institutional investors into the cryptocurrency scene as an important step. However, not everyone is as convinced of its effects.
Whilst some are intrigued by the potential price surges this would likely bring, others are concerned that institutional investors are largely uninterested in the technical nature and philosophical ambitions of cryptocurrencies.
With that being said, however, it remains to be seen whether Fidelity indeed launches this service in the coming weeks. Moreover, even if Fidelity starts institutional Bitcoin trading, only time will tell how it will be received by institutional investors.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.