According to people familiar with the matter, Fidelity Investments will provide institutional clients with the services of buying and selling the world's most popular digital asset bitcoin in a matter of weeks. Fidelity Investments has begun offering Bitcoin hosting services earlier this year.
The Boston-based company is one of the world's largest asset management companies. In October last year, the company created Fidelity Digital Assets, betting that Wall Street’s interest in trading and protecting digital currencies would grow. This also gives Fidelity a step ahead of its main competitors, which have so far mostly been on the sidelines of cryptocurrencies. The company said in October last year that it will provide over-the-counter execution and order routing services for Bitcoin earlier this year.
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The person who asked not to be named said that Fidelity will work with the brokerage companies E*Trade and Robinhood to provide cryptocurrency trading services to clients, but Fidelity only targets institutional customers, not as E*Trade and Robinhood. Retail investors. A study released by Fidelity on May 2 found that 47% of institutional investors believe that digital assets are worth investing.
Fidelity spokesperson Arlene Roberts said in an email:
“We currently support a select range of customers on our platform. We will continue to roll out our services in the coming weeks and months based on customer needs, jurisdiction and other factors. Currently, our service focus is on Bits. currency."
Between November last year and February this year, 441 institutional investors were surveyed. According to the survey, 72% of institutional investors prefer to buy investment products with digital assets, and 57% of institutional investors choose to purchase digital assets directly.
The obstacle to cryptocurrencies attracting more mainstream investors is that it continues to be plagued by fraud, theft and regulatory violations. The latest case involving the New York Attorney General accused Bitfinex, one of Bitcoin's biggest exchanges, concealing about $850 million in customer and corporate cash losses. Vancouver-based Quadriga Fintech Solutions Corp. is facing bankruptcy. After the company's founder Gerry Cotten died last year, the company owed 115,000 customers about $193 million in cryptocurrency and cash.
Bitcoin has risen more than 50% this year, continuing the volatility of prices and attracting many individual investors to buy this almost unregulated currency. In 2017, Bitcoin soared 140% and plunged 74% last year, making Bitcoin famous among traditional investors.