Already in September last year, it was reported that Fidelity was planning to launch crypto products. Now, a source to Bloomberg states that the American financial giant will offer trading with the most popular cryptocurrencies for institutional clients within just a few weeks.
Earlier this year, Fidelity also launched a custody service for bitcoin, and if they also soon launch crypto trading, they would be at the forefront compared to their competitors.
At the end of April, there were reports that the American online securities brokerage E-trade is about to introduce cryptocurrency trading on its platform, and since the beginning of 2018, the American financial services company Robinhood also offers trading with cryptocurrencies for retail investors. However, Fidelity will only offer trading to institutional players, Bloomberg writes.
Institutional players are coming in
The ex-hedge fund manager Mike Novogratz said back in February this year that institutions will drive the next price increase in the crypto world and that cryptocurrencies now are changing owners from retail investors to institutions that are taking the opportunity to buy at low prices.
According to Novogratz, all the architecture that institutions need to feel comfortable is being put in place.
“Fidelity has got 200-300 customers lining up. They are not going to all rush in on day one. They are going to want to see water run through the pipes. But over the next six to twelve months, you are going to see institutions invest a small amount of their assets. And a small amount of institutional assets is a lot of money”, Mike Novograts told Bloomberg in February.
New study shows there is interest
In addition, a new study released by Fidelity on May 2 shows that 47 percent of institutional players believe that digital assets are something worth investing in.
“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”, Fidelity spokeswoman Arlene Roberts said in an email to Bloomberg.
Since the news that Fidelity might offer cryptocurrencies trading for institutional players within just a few weeks was published during Monday, the bitcoin price has risen by over four percent.
