According to Bloomberg, Fidelity Investments is on the verge of buying and selling Bitcoin (BTC). Earlier this year, the firm began a custody service to store Bitcoin, but now it will evolve to trading.
Fidelity Investments Embraces Bitcoin
Fidelity is one of the largest asset managers in the world. Its newly-formed arm—Fidelity Digital Assets—will be the first of its kind to offer “over-the-counter trade execution and order routing for Bitcoin.”
The Wall Street giant is aiming its cryptocurrency trading product at institutional traders and will start with Bitcoin.
According to Fidelity spokesperson Arlene Roberts:
“We currently have a select set of clients we’re supporting on our platform. 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.”
Wall Street Embraces
Fidelity joins brokerages E*Trade Financial Corp and Robinhood in offering cryptocurrency trading to clients. But where the latter two target retail investors, Fidelity is only targeting institutional customers.
The company released a study on May 2 stating that 47% of institutional investors believe digital assets are a good investment idea.
The news should be enough to spur on Bitcoin bulls. One of the greatest hurdles faced by Bitcoin is mainstream adoption. Price volatility, fraud, and theft remain major concerns for institutional investors and keep Wall Street at bay when it comes to crypto.
Bitcoin is currently on an upward swing, having already grown more than 50% so far this year. The coin currently sells for $5,725 approximately according to CoinMarketCap. The month of May alone has seen the coin surge almost 8% as it heads toward $6,000 per coin.
What are your thoughts on Fidelity’s embrace of Bitcoin? Do you think it’s simply a matter of time before others follow suit?
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