Fidelity Makes a Long-Term Bet on Bitcoin

 

A report by the Boston Globe has revealed that Fidelity is diving into the crypto space more than previously imagined. Fidelity Digital Assets, Fidelity's crypto-dedicated subsidiary, fidelity bitcoin 401k, launched in October 2018 with the goal of creating crypto services for the investment company's institutional and sophisticated investors.

The President of Fidelity Digital Assets, Tom Jessop, says that the pandemic has been a large catalyst for cryptocurrency investment given the uncertainty of the time.

“What really got people off the fence was pandemic, because you’ve got this scarce asset class — there will only ever be 21 million bitcoin created — and an environment where our currency is being debased, fidelity bitcoin ira, and there’s a ton of money printing," said Jessop.

Jessop added that when investors like Paul Tudor Jones and Stanley Druckenmiller began speaking about Bitcoin as a hedge against inflation, "that’s when the match was set to the bonfire."

But after all of the interest from the company's larger investors, Fidelity is looking to bring Bitcoin exposure to retail. Upon the regulatory approval of crypto-related ETFs, how much bitcoin fidelity owns, Fidelity is planning to create a Bitcoin ETF that would allow broader investors outside of just higher net worth and institutional players. 

“If someone just woke up one day and said, ‘I need to have exposure to bitcoin,’ their options are limited,” said Sandler. “The ETF would be a much more accessible product.”

Fidelity is making its bet on Bitcoin and the crypto space further with investments in various crypto startups as well as the crypto data company Coin Metrics and exchanges like ErisX and Talos. Jessop said that these kinds of investments "keep [Fidelity] sharper on what’s actually happening, a fidelity cryptocurrency fund, which is super-important given how fast things are moving.”